Adjustment to 72t Distributions after Divorce Sett

L1: Adjustment to 72t Distributions after Divorce SettIn a divorce settlement, the husband will receive 45.2% of his wife’s IRA assets. The wife receives 72t distributions from this IRA account. Can she reduce her 72t distributions proportionate to the assets (by 45.2%)given up to her spouse? Is a “Private Letter Ruling” required? 2005-09-15 11:29, By: Jeff, IP: [216.170.130.16]
L2: Adjustment to 72t Distributions after Divorce SettHello Jeff:
Back in the mid-to-late 90’s there were several (3 – 4) favorable PLRs issued on divorce situations that generally followed what I call the “prorata-step-in-stride” rule; e.g. Spouse A is taking SEPP distributions and Spouse B is awarded by QDRO 50% of Spouse A’s IRA; therefore it was okay for Spouse A to cut the SEPP distributions by the same 50%. Further, Spouse B was not under any obligation to continue the 50%.
However, in between we have Revenue Ruling 2002-62 which convered a lot of waterfront but did not in any fashion (re)address the divorce situations.
Given the relative antiquity of these PLRs plus RR 2002-62; I would certainly be uncomfortable rendering an opinion; therefore I would suggest that a new PLR is in order.
TheBadger
wjstecker@wispertel.net
2005-09-15 15:58, By: TheBadger, IP: [66.250.23.21]