Divorce and IRA
Clients were divorced as of 9/30/23. The divorce decree specifies that the husband’s IRA should be split 50/50. Should the RMD be made before the account is split or after? Should the RMD proceeds be split between the husband and wife? If the RMD proceeds are split the husband will receive the 1099 so how would the wife pay her share of the taxes?
Permalink Submitted by Alan - IRA critic on Thu, 2023-11-16 17:37
The transferor spouse is responsible for 100% of the 2023 RMD and the taxes on that RMD as triggered by the 1099R. It would be simpler to complete the divorce transfer prior to the RMD to avoid issues with respect to how much of any prior distributed RMD the receiving spouse is entitled to through an additional transfer . The decree is likely to include language regarding the effect of any distributions taken prior to the divorce transfer.