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February 27, 2009

Do the Qualified domestic relations order (QDRO) rules apply to IRAs


Do the Qualified domestic relations order (QDRO) rules apply to IRAs

I received some IRA assets from my former spouse as part of a divorce settlement. These amounts were transferred to an IRA in my name and social security number. I know that under the qualified domestic relations order (QDRO) rules, my distributions from such amounts under a qualified plan would be penalty free. Can I apply the same rule to an IRA?

No. The QDRO early distribution exception does not apply to IRA assets. Therefore, any distributions that you take from the IRA before you reach the age of 59 ½ will be subject to the early distribution penalty, unless you qualify for another exception

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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