ILLMAS Posted April 3, 2019 Report Share Posted April 3, 2019 I have never heard or encountered this before, but can a TP that is getting divorce transfer/rollover a percent to the spouse retirement without any tax consequences? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 4, 2019 Report Share Posted April 4, 2019 It's called a QDRO. The QDRO splits the retirement fund into two parts per the lawyer's direction. The QDRO has no tax consequences. Any distributions after that would have tax consequences based on the usual laws, ages, etc. 4 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 4, 2019 Author Report Share Posted April 4, 2019 13 minutes ago, Lion EA said: It's called a QDRO. The QDRO splits the retirement fund into two parts per the lawyer's direction. The QDRO has no tax consequences. Any distributions after that would have tax consequences based on the usual laws, ages, etc. Thank you Quote Link to comment Share on other sites More sharing options...
Randall Posted April 4, 2019 Report Share Posted April 4, 2019 Transfer MUST be direct. No 60 day rule here. 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 4, 2019 Report Share Posted April 4, 2019 4 hours ago, Randall said: Transfer MUST be direct. No 60 day rule here. This is very important. The spouse giving the funds must not touch them. They cannot just take a distribution check, cash it and give the money to the spouse. If they do, they pay tax. They give a copy of the order from the court, the Qualified Domestic Relations Order (QDRO) to their Retirement Fiduciary along with the information on the spouses account. The trustee transfers to the spouse and it is done. Tom Modesto, CA 3 Quote Link to comment Share on other sites More sharing options...
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