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Links-IRA, SEP, ROTH IRA, SIMPLE IRA TRANSFER IN DIVORCE

Links-IRA, SEP-IRA, ROTH-IRA, SIMPLE IRA TRANSFER IN DIVORCE

How do I transfer my retirement money after divorce?

When dividing an IRA, the couple doesn't need to go through the QDRO process. Instead, couples can request a direct transfer, or "a transfer incident to divorce." The account owner will order the IRA plan administrator to transfer the necessary assets directly to the other spouse's new IRA account.

 The most efficient way to divide an IRA is to do a trustee-to-trustee transfer, which moves assets from one spouse's IRA to the other spouse's account. This can be beneficial because you will avoid the 10% early distribution penalty (if younger than 59½) and taxes.

You may require Medallion Signature Guarantee on the IRA, SEP-IRA, ROTH-IRA, SIMPLE IRA paperwork. This means the person who owned the account may have to contract either bank or his brokerage firm to get this Medallion Signature Guarantee their signature on the transfer paperwork. I have seen it taking over a year and finely going back to court to get the signature in which they agreed originally. A signature guarantee is a form of authentication, issued by a bank or other financial institution, which verifies the legitimacy of a signature and the signatory's overall request. This type of guarantee is often used in situations where financial instruments, such as securities, are being transferred. I always recommend if the paperwork is not signed and transfer within 6 months charge the spouse who required Medallion Signature Guarantee a $100 per day fee until the transfer is done. This fee will motivate the party to get the transfer timely and also pay attorney fees if taken back to court.

1. Tricky Divorce Issue: How to Divide 401(k)s, IRAs and Annuities Link: Article-Tricky Divorce Issue: How to Divide 401(k)s, IRAs and Annuities

2. Tax-Free Division of IRAs for Divorcing Couples LinkArticle-Tax-Free Division of IRAs for Divorcing Couples

3.  How to Split IRAs and Other Retirement Plans During A Divorce Link: Article-How to Split IRAs and Other Retirement Plans During A Divorce

4. How to Split an IRA in Divorce Link: Article-How to Split an IRA in Divorce

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