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divorce on 72t IRA

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ByRoberta

L1: divorce on 72t IRAHusband has IRA on 72(t) and is now divorced. Wife (thru QDRO) got 50% of the IRA account. Who has to continue withdrawals? Do both? If husband does, shouldn’t the amount be adjusted in half? Thanks!
2002-10-03 11:57, By: Roberta, IP: [127.0.0.1]

L2: divorce on 72t IRAHello Roberta:

Actually, in the last 18 months or so there have been 1/2 dozen private letter rulings on this whole issue. The result:

1. Wife is under no obligation to do anything.

2. Husband MUST continue SEPPs either (a) in the full amount preceeding the divorce; (b) in a reduced amount exactly equal to the division of the IRA; e.g. at the 50% level in this case; so to speak, the “step-in-stride” solution.

In addition there has been one ruling issued about three months ago where the husband elected neither 2a or 2b but instead got permission to adopt a new methodology & new interest rate resulting in a brand new distribution amount.

TheBadger
wjstecker@wispertel.net 2002-10-03 12:14, By: TheBadger, IP: [127.0.0.1]

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