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divorce and 72t distribution

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ByMB

L1: divorce and 72t distributionbegan quarterly withdrawals from IRA at in 2008 at 57….Flow is from an annuity that pays me a guaranteed income stream for life (or I can get a lump sum at the end of my 72 t 5 year window and do something else). Wife wants to keep plan in tact after divorce and have 50% go to her and 50% to me from plan administrator. Can this be done? Is this a modification? Will I have to maintain the distribution to me ,(she disapproves), and then pay her 50 % and call it alimony..as the distribution will be income to me?…advice please.2009-01-29 23:39, By: MB, IP: [24.129.116.250]
L2: divorce and 72t distributionI can’t comment on whether or not an IRA under 72t can be split between spouses (as a consequence of divorce settlement) and the consequences to your 72T “plan”, (perhaps others can) but I will say that I don’t think you can’t “call” anything alimony (to the IRS) unless it is stipulated as alimony in the divorce agreement. I would also assume that if your wife had a choice of receiving 1/2 of your IRA, that she could roll over into her own (and defer the taxes until withdrawn) or having 1/2 of your SEPP withdrawals given to her by you as taxable alimony, she would choose the former.Good luck. KEN2009-01-30 15:29, By: Ken, IP: [71.192.120.143]

L3: divorce and 72t distributionthanks Ken….you are right on the alimony stipulation being spelled out in the divorce decree….however on the withdrawal data, she needs the money to maintain her standard of living and since the annuity is tied to the equities market ( which is down 80%) fron my initial investment, she would suffer a hugeloss as would I2009-01-30 16:37, By: mb, IP: [24.129.116.250]

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