ILLMAS Posted April 3, 2019 Report 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
Lion EA Posted April 4, 2019 Report 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
ILLMAS Posted April 4, 2019 Author Report 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
Randall Posted April 4, 2019 Report Posted April 4, 2019 Transfer MUST be direct. No 60 day rule here. 1 Quote
BulldogTom Posted April 4, 2019 Report 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
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