How Can We Help?
< Back
You are here:
Print

72t and divorce

Posted
Last Updated On
Bynowens

L1: 72t and divorce
I need to know what happens to someone taking SEPP and has tosplit account due to divorce

2007-08-23 09:33, By: nowens, IP: [199.43.32.87]

L2: 72t and divorceSplitting a SEPP Plan account … IRA, K-plan, etc … as part of a divorce settlement (QDRO)is NOT … repeat … NOT an acceptable reason to terminate the SEPP Plan. Only death and disability are acceptable resons. If you split the account by reason of QDRO, the SEPP will be a bust.
Hopefully atleast one of the parties” attorney will be familiar with this situation. If not,get a qualified financial planner, CPA or tax attorney to explain this situation to the attorneys and the judge if necessary. Busting the SEPP can be disasterous and will not be in either party”s best interest.
Generally the best solution is to keep the SEPP Plan account intact and split the distributions util the 5-year and age 59 1/2 requirements are satisfied, and then split the corpus of the account.
Jim2007-08-23 11:26, By: Jim, IP: [24.252.195.14]

Table of Contents