Saturday, November 21, 2015

Tips for Dividing Retirement Accounts in a Divorce - Retirement Division, Forensic Accounting and Business Valuation Blog

Tips for Dividing Retirement Accounts in a Divorce - Retirement Division, Forensic Accounting and Business Valuation Blog









In order to divide a qualified retirement account in a
divorce, you will require a special order to facilitate the division called a
Qualified Domestic Relations Order commonly referred to as a
"QDRO".  There are very limited
exceptions to this requirement and the most common exception is an IRA as that
is not a qualified plan and does not require a QDRO, although in rare
circumstances the plan does require them. 
However, if you pin them down, the Plan Administrators are never able to
provide a legal reason they are require one and it is always about them wanting
extra protection if they feel the final judgment of divorce is ambiguous.  The good news for the "real"
qualified plans is that under ERISA you are afforded a onetime exception for
the spouse receiving the proceeds (referred to as the Alternate Payee) in that
you can withdraw all or some of the proceeds simultaneously with the entry of
the QDRO and not be subjected to the traditional 10% early withdrawal penalty
if you are under 59 1/2.  Keep in mind
that if you are the Alternate Payee receiving the money from the other spouses
account (referred to as the Participant) and your plan is to either add it to
an existing IRA or open up a new IRA for the funds coming in, please make sure
to utilize an adviser to whom has a fiduciary duty to you and his/her interest
is truly your interest.  Quite honestly,
after having prepared literally thousands of these for the past 12 years and
having been asked almost every day of my life for the past 12 year for a referral
to a financial adviser, it is only recently that I have identified a
team/company, with offices across the nation that I FINALLY feel comfortable
referring to a team of advisers because, I am have been fortunate enough to
witness their work first hand, watch the lengths to which they will explain all
options to their clients and the respect those show towards their clients.  Having said that, whether you are just
starting out or not satisfied with your current adviser or simply desiring to
follow that national trend of "
Before Divorcing your Spouse,
consider Divorcing your Financial Adviser
” (Great Article and Movie by the
way) please let me know because, at no additional cost to you, I am happy to
connect you with someone to manage your money in or out of a retirement account
and you are looking for someone with experience, I would be happy facilitate
the introduction.  Either call
844-234-7376 or email me
Robert@qdronow.com.

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