Save time with our cheat sheets, fact sheets, checklists & books!

February 19, 2009

Divorce decree (divorce or separation instrument)

Your Guide



Also referred to as a written separation agreement -Court issued document addressing the dissolution of a marriage or legal separation. The divorce decree will typically address how the assets in an IRA should be divided between the spouses ( or former spouses).

The transfer of an individual’s interest in an IRA to his spouse or former spouse under a divorce decree  is not to be considered a taxable transfer .

The amount transferred to the spouse or former spouse is treated as the IRA of the receiving spouse

Referring Cite

IRC § 408(d)(6) , IRC § 71(b)(2)

Additional Helpful Information

  • A common mistake is to have a QDRO issued for an IRA. However, QDROs do not apply to IRAs . IRC §414(p)(9)
  • The IRA custodian should obtain a  copy of the divorce decree as reference for determining how the IRA assets should split amount the spouses ( or former spouses).
  • The divorce decree

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules