Save time with our cheat sheets, fact sheets, checklists & books!

February 19, 2009

Divorce decree (divorce or separation instrument)



Also referred to as a written separation agreement -Court issued document addressing the dissolution of a marriage or legal separation. The divorce decree will typically address how the assets in an IRA should be divided between the spouses ( or former spouses).

The transfer of an individual’s interest in an IRA to his spouse or former spouse under a divorce decree  is not to be considered a taxable transfer .

The amount transferred to the spouse or former spouse is treated as the IRA of the receiving spouse

Referring Cite

IRC § 408(d)(6) , IRC § 71(b)(2)

Additional Helpful Information

  • A common mistake is to have a QDRO issued for an IRA. However, QDROs do not apply to IRAs . IRC §414(p)(9)
  • The IRA custodian should obtain a  copy of the divorce decree as reference for determining how the IRA assets should split amount the spouses ( or former spouses).
  • The divorce decree

Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Be among the first to know when

IRA Rules