QDRO 401k rollover to Traditional IRA
Hi: I am aware that a QDRO 401k account would include the date of birth of the original account holders date of birth (ex-husband) when set up for RMD rules, but when that QDRO 401k account is rolled over into a traditional ira, the date of birth should now be the one of the new account holder? Thanks in advance!
Permalink Submitted by Alan - IRA critic on Wed, 2015-09-23 17:52
The QDRO account of the alternate payee uses the employee DOB to determine the RBD, but the alternate payee’s age to calculate the RMD once they begin. Once the funds are rolled to an IRA of the alternate payee, that payee’s DOB and RBD will be applied in the same manner as other IRA owners. This could result in IRA RMDs starting for the alternate payee in the year following the rollover (no IRA balance prior year end) in some situations where there was no RMDs in the qualified plan due to employee being younger.