ALTERNATIVE ANSWER FROM ANOTHER ATTORNEY.
Fidelity is correct. A qualified domestic relations order (QDRO), as defined in 26 USC § 414(p)
, applies only to employer-sponsored
pension and retirement plans. An Individual Retirement Account (IRA) is NOT
an employer-sponsored, so division of an IRA incident to dissolution of marriage
does not require a QDRO.
HOWEVER, an IRA may be divided incident to dissolution of marriage, with all or a portion being TRANSFERRED to the account owner's spouse, without the division and transfer being deemed as a taxable IRA distribution, if done pursuant to "a divorce or separation instrument
," which is defined in subparagraph (A) of section 26 USC § 71(b)(2) as "a decree of divorce or * * * a written instrument incident to such a decree.”
If your divorce judgment specifically identifies the IRA that is to be divided and transferred and specifies the details of the division, the divorce judgment will generally be sufficient, coupled with such other procedure requirement that may be imposed by the IRA custodian.CLICK HERE
for an article the fully explains and details this topic. Regarding Fidelity IRAs.......
Fidelity requires that the transferee (recipient) spouse have a Fidelity IRA, so that the funds can be transferred (for example) from husband's IRA to wife's IRA. If wife does not already have a Fidelity IRA, will need to set one up.
To accomplish the transfer of a Fidelity IRA, you simply need to follow the instructions as explained at Fidelity's website. CLICK HERE
to get to the website. (You will note that Fidelity makes no reference to the need for a "QDRO" in its instructions and procedures for transferring a Fidelity IRA pursuant to a divorce judgment.
Hope this clarifies. I wish you well.