QDROs for IRA?

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alunalopez
Posts: 21
Joined: Thu Mar 01, 2018 11:54 pm

QDROs for IRA?

Post by alunalopez » Fri Mar 02, 2018 12:24 am

Do I need a QDRO for an IRA?

lnixon
Posts: 40
Joined: Sun Feb 25, 2018 10:53 pm

Re: QDROs for IRA?

Post by lnixon » Fri Mar 02, 2018 12:48 am

Parties do not need a QDRO to transfer funds IRA to IRA incident to divorce. An IRA to IRA transfer is governed by § 408 of the Internal Revenue Code. However, you may need to prepare a a domestic relations order (“DRO”) pursuant to I.R.C. § 408 in a dissolution case when the divorce judgment does not provide a clear enough description of the transfer.

IRA custodians will usually simply inform the parties that they only require their internal form completed to make this transfer. However, if the judgment does not contain sufficient detail simply using the form will not satisfy the IRC §408(d)(6) requirements and the transfer will be treated as a taxable distribution to the account holder.

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