How to Split Retirement Accounts as Part of a Divorce Settlement FLEXCAST

Overview

According to the Center for Retirement Research at Boston College, about 40 percent of marriages end in divorce. For many of these individuals, IRAs are included in their divorce settlement agreement. The spouse who receives an IRA as part of a divorce settlement agreement is responsible for paying any income tax due on the amount. To ensue that this requirement is properly applied, the applicable provisions in the Tax Code must be adhered to.

Highlights

The tax implications of splitting an IRA or 401(k) under a divorce settlement. How divorce affects the 10% early distribution penalty. Special documentation requirements qualified retirement plans vs IRAs. Divorce and portability of retirement accounts. Distribution limitations for assets awarded under a divorce settlement agreement.

Prerequisites

None.

Designed For

Financial advisors, tax professionals, and individuals who support IRAs and employer plans (employees of financial institutions who answers questions about and handle transactions for IRAs and employer plans).

Objectives

To learn how to protect clients from unintended consequences when giving up retirement accounts under a divorce settlement agreement. To identify transactions that are affected by splitting a retirement account under a divorce settlement. To know the documentation requirements that must be provided to IRA custodians and plan trustees. To know how to properly split IRA assets that are awarded under a divorce settlement agreement. To understand how divorce affects a former spouse’s IRA. To identify tax planning opportunities for retirement assets awarded under a divorce settlement.

Preparation

None.

Notice

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