Spousal Beneficial IRA
If a couple divorces and the wife is to get 50% of the ex-s 401(k), can it be set up as a beneficial IRA, where she can access the money for emergencies and pay the taxes due, but be exempt from the penalty?
If a couple divorces and the wife is to get 50% of the ex-s 401(k), can it be set up as a beneficial IRA, where she can access the money for emergencies and pay the taxes due, but be exempt from the penalty?
Permalink Submitted by Alan - IRA critic on Mon, 2016-05-23 18:25
The alternate payee spouse (wife) is awarded a portion of the 401k through a QDRO, she does not inherit it. Therefore, she cannot treat it as an inherited account if the employee passes.