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72-t distributions and divorce

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ByAshley

L1: 72-t distributions and divorceA client is receiving 72-t distribuitons and is giving his ex-spouse half his IRA. Once the assets are split between the two accounts, the client’s 72-t amount will be halved.
What happens to the ex-spouse’s portion? Is she required to continue receiving 72-t distributions, or is the account now hers to do whatever she wants to with?
Thanks2004-12-29 13:49, By: Ashley, IP: [66.162.13.90]

L2: 72-t distributions and divorceHello Ashley:
The ex-spouse has three options:
1. Do nothing; no SEPP distributions are required.
2. Start a new SEPP plan.
3. Continue her 50% of the old plan in which case she receives retroactive time credit from the original inception of his SEPP plan.
TheBadger
wjstecker@wispertel.net
2004-12-29 14:38, By: TheBadger, IP: [66.250.23.21]

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