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A QDRO applies to qualified plans, 403(b) plans, etc - but not IRAs. The term "transfer incident" is applicable to IRAs.
The IRA assets can be transferred with the language of the divorce decree.
This transaction would be non taxable, except if the spouse receiving the benefits decides to take the distribution instead of placing it into their own account. You say your ex intends to rollover the assets. She will not be taxed until she takes this amount out.
The transaction will either be a rollover or transfer, depending on the terminology used by USAA or her chosen IRA custodian.
The divorce decree or separation instrument MUST BE approved by the court for this to be a non-taxable transfer
I believe my agreement covers the transfer, and it's my itent to wait until after the decree to initiate a transfer. Her is the wording:
Not sure if you can read what I posted.
I actually cannot.
Can you copy and paste the words instead of uploading a picture?
It's not letting me view a full sized picture - Just a little tiny scrunched up version of what you sent.
The wording seems appropriate. I was able to save the image and view
Husband shall transfer the following Investment/Retirement accounts to Wife within sixty (60) days of the Decree of Dissolution is issued. The parties shall share equally the cost to prepare a Qualified Domestic Relations Order.
Yes, this sounds appropriate, but remember this must be approved by the court in order for it to be valid and this to be a non-taxable event
Here's a good article explaining this:
Well, if the court does not approve it, then I guess I'm obligated to make the transfer.
Thx for the article.
Your welcome. Also, if this is just an IRA, a QDRO is not necessary
A QDRO is only necessary for plans that must meet requirements under ERISA
such as 401(k), 403(b) etc
I don't see why the court would not approve it...if you are in agreement about the divorce once it's final it's agreed on.
Here's another excellent article. The part you want is on page 3 (of the text, past all the table of contents etc) CLICK HERE
Yes, I think my lawyer is being over conservative and slightly misinformed. USAA, my investement firm basically confirmend what you are saying but they sounded like they were reading from a script. One clarification question, USAA calls my account a Self directed IRA and I could not confirm that this follows the same guidelines as Trad IRA.
Self directed just means you have more control over your investment
It is a traditional IRA, but you control the investment
some IRAs only allow you to have certain fundfs
THanks, XXXXX XXXXX my questions.
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And share that second article with your lawyer - it was written for lawyers
Thanks so much!
I wish you the best of luck
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