Ask me how to divide your IRA account?

Posted on : November 15, 2014

The common misperception is that you need a Qualified Domestic Relations Order, or QDRO, to divide your Individual Retirement Account (IRA.) Actually, the law which governs Pension Plan division, ERISA, does not apply to IRA benefits. Typically, all you need to divide the community property equity of an IRA is your conformed filed copy of the Judgment and an instruction letter to your financial institution, asking them to roll over the percentage of your IRA to your former spouse’s IRA account. The transfer of money from one spouse’s IRA to the other, is not a taxable event, provided it is performed as part of the division of assets in the divorce. shutterstock_45728272

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