When a married couple gets divorced, IRAs can be divided as a result. So, if you’re in the middle of a divorce, you should know that some or all of your IRA can be awarded to your ex-spouse. The process is similar to how some of your other assets are divvied up, but there are major differences and special rules that apply when you’re dealing with an IRA.
In a marriage where one spouse (Annie) has earned income and the other spouse (Bernie) has little or no income, an IRA or Roth IRA contribution can be made for Bernie based on Annie’s income. However, what happens if Bernie makes his contribution early in the year and later in the year he and Annie are divorced or separated?
There’s a lot of confusion about the retirement plan and IRA rules. Recently, we were made aware of two cases where the attorneys didn’t know how an IRA should be split in a divorce and incorrectly used the employer retirement plan rules when drafting the documents used to divide the IRA.
After either a divorce or a remarriage, it is time to check your beneficiary forms.
I had an interesting question from an advisor. His married clients don’t like each other anymore. They have considered their options; stay together, get a legal separation, or get a divorce. They have decided to do none of these things.
In the current issue of its newsletter, Employee Plans News (Issue 2013-3, September 13, 2013), IRS has an article on one of the differences between divorce and legal separation as it impacts employer retirement plan rules.
President Barack Obama delivered his State of the Union address to the American people last night. With that in mind, we want to take a look at some of the questions that arise when the State of your Union changes. What changes are there to your IRA when you get married? What would happen to your IRA if you got divorced? We explore these questions and more in a short Q-and-A below.
We've all heard that half the marriages in the United States end in divorce. An accurate rate of divorce is difficult to get because those statistics are gathered by different groups and are not comprehensive. Regardless, divorce is certainly common. Individuals who have retirement plans almost always will name a beneficiary to receive the funds upon death.
Can you put your IRA into your trust? NO Can you transfer it to your spouse? NO. We explain why below.
The "sandwich" generation is those who are raising their children and also taking care of their parents. They are sandwiched by their care-taking responsibilities. They are likely to have their own 401(k)s or other employer plans and IRAs, and they are likely to be the beneficiaries of their parent’s retirement assets. Again, they are sandwiched – they are owners with beneficiaries and they are also beneficiaries. Here is what these caretakers need to know about both sides of the equation.
