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Is there a penalty exception for a divorced spouse receiving…

Is there a penalty exception...
Is there a penalty exception for a divorced spouse receiving the other spouse's retirement distribution as part of the divorce?
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Answered in 3 minutes by:
3/8/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,272
Experience: Adjunct Professor
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Hey! I'm Carter, I'm a CPA and can help you out.

There is no penalty as long as you keep the amounts in a retirement account. So, your spouse can transfer the funds from his retirement account to yours with no penalty. Once they hit your account, if you take them out, there would be no applicable exception to the 10% penalty.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,272
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