Divorce and 72T
L1: Divorce and 72TIf you are going through a divorce and have a court order to split the IRA accountwith your former spouse, can you start 72t prior to the asset distribution is finalized?
I know how much should be in my IRA (50% of the current value). Thus, can I start the 72t based on that value?2008-06-10 13:44, By: Kirby, IP: [188.8.131.52]
L2: Divorce and 72TKirby,You have to wait until her share has been transferred out, so that the real starting IRA value is the actual value that you use in your calculations. If you compute a starting balance and have a payment made to yourself, and they later move her share out of the IRA, you have already busted the plan, and it may come back to haunt you (if ever audited) years later with 10% penalty and interest owed on all distributions to date. In addition, if your “half” changes due to market fluctuations before the split, then you cannot pinpoint the amount that will be the starting balance for your future72t. It is important to wait.
KEN2008-06-10 14:02, By: Ken, IP: [184.108.40.206]
L2: Divorce and 72THello Kirby:
About a year ago I was aked to opne on a situation involving a SEPP plan and a divorce ordering the division of the inderlying IRA. See the Articles section for my response as this is a fairly complicated issue.
TheBadgerwjstecker@wispertel.net2008-06-12 15:41, By: TheBadger, IP: [220.127.116.11]