divorce

L1: divorce What impact if any does Revenue Ruling 2002-62 have on a divorce decree. For example, if the wife is doing 72t distributions from her IRA and the husband per the divorce decree is entitled to 50% of this IRA. How is this handled? Does this blow up the 72t? Can the spouse continue and take 50% of the distribution amount she was in the past?
thanks
2003-05-01 12:46, By: Doug , IP: [127.0.0.1]

L2: divorce Hello Doug:
There are approx 6 – 8 PLRs on divorce decrees when SEPPs are in progress; all of which should continue to remain in force irrespective of revenue ruling 2002-62; even though all of these rulings precede the new ruling. In general, all of the following applies assuming that the corpus of the IRA in question is being split pursuant to a QDRO (essentially a court order made by the judge administering the divorce).
Further, lets assume A & B are getting a divorce & A is taking SEPPs from his/her IRA & further, the judge has ordered a 50/50 split in the IRA.
A has two choices: (1) continue the full SEPP amounts irrespective of the divorce; (2) ratably reduce the SEPPs in an equal percentage to the division of the corpus.
B has three choices: (1) do nothing; (2) pickup the remainder ratable SEPP distribution amount voluntarily; (3) adopt a new plan with or without adding new IRA assetas that B may own.

TheBadger
wjstecker@wispertel.net

2003-05-01 13:04, By: TheBadger, IP: [127.0.0.1]