Retirement Planning/Transfer to IRA


I am 61. Received 20K from QDRO. Do I need to put this in an IRA? If not what are consequences?

richard @thefinancialq  

richard @thefinancialq  
Thank you for your question.

A QDRO is a distribution which was made due to a divorce. You are not required to rollover these dollars into an IRA. The only impact to you is that you will owe the federal and state taxes due on these dollars received if you do not put it back into an IRA. You however will not owe the 10% penalty. In addition, if you spend it now you will not have this money available in the future for your retirement.

I would recommend that you visit this issue with a Certified Financial Planner in your area and go over your own personal situation and how this decision will currently impact you now and into the future.  

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Richard E. Reyes, CFP


I can provide answers to questions relating to retirement especially relating to; income distribution, tax efficiency, long-term care insurance, life insurance, estate planning, asset protection, variable and fixed annuities, alternative investments and prudent portfolio design.


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