Expert: David M Iannopollo - 7/1/2009

Question
Hello,

I am currently in the process of getting divorced.  My soon to be ex-wife could possibly get a portion of my contributions to my IRA (traditional) that I have made since our date of marriage.  My question is, how would this transfer of assets take place and what are the tax implications to me if and when this happens?

Answer
Hi Chris,
I'm sorry to hear of your divorce. Normally, in these circumstances, the judgde may issue a QDRO or qualified domestic relations order that will instruct as to how these types of assets will be divided.

Any portion of your IRA that she receives can be rolled over into an IRA for her. You will not owe any taxes and neither will she unless she takes a distribution on all or part of these funds.

I hope this helps. Good luck!

Dave