A:

In order to have your portion of the IRA assets transferred to you (i.e. into your name), you should contact your husband's IRA custodian/trustee and provide them with a copy of the divorce decree. Be sure to ask the custodian about other documentation requirements.

The custodian may distribute the assets to you or require you to establish an IRA to which the assets can be credited. If the amount is distributed to you, it will be reportable to you (i.e. in your name and tax ID number). In other words, the taxation of assets transferred to a former spouse in accordance with a divorce decree is the responsibility of the spouse who is awarded the assets. However, you will not be taxed on the amount if you roll over the assets into an IRA or other eligible retirement plan within 60 days of when you receive them.

For more information on this type of transaction, please see my article about sharing retirement plan assets as a result of a divorce.

This question was answered by Denise Appleby
(
Contact Denise)

RELATED FAQS

  1. When can benefits be received from a provident fund?

    Find out when participants in provident funds can begin receiving benefits, including how funds can be used to finance important ...
  2. Is Social Security Income a perpetuity?

    Find out why Social Security income is not classified as a perpetuity, including what constitutes a perpetuity and the basics ...
  3. What types of investments are allowed in a provident fund?

    Read about the types of investments allowed in various provident funds around the world, including the Indian, Malaysian ...
  4. How does a provident fund compare to U.S. Social Security?

    Find out how provident funds compare to the U.S. Social Security program, including examples of income limits and contribution ...
RELATED TERMS
  1. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  2. Backdoor Roth IRA

    A method that taxpayers can use to place retirement savings in ...
  3. Current Service Benefit

    The amount of pension benefit accrued by an employee who had ...
  4. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  5. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...
  6. Medigap

    Also called Medicare Supplement Insurance, Medigap is health ...

You May Also Like

Related Articles
  1. Retirement

    Does it Make Sense to Have an MLP in ...

  2. Retirement

    Top Tips for Rebalancing 401(k) Assets

  3. Professionals

    Why Millionaires are Running Scared

  4. Professionals

    Few Target-Date Managers Invest in Their ...

  5. Fundamental Analysis

    Should You Hire an Advisor or DIY Your ...

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!