{"id":1124,"date":"2018-05-22T06:32:47","date_gmt":"2018-05-22T13:32:47","guid":{"rendered":"https:\/\/www.arwanilawfirm.com\/?p=1124"},"modified":"2018-05-22T06:32:47","modified_gmt":"2018-05-22T13:32:47","slug":"what-is-the-costliest-ira-mistake-you-can-make-during-divorce","status":"publish","type":"post","link":"https:\/\/www.arwanilawfirm.com\/what-is-the-costliest-ira-mistake-you-can-make-during-divorce\/","title":{"rendered":"What Is The Costliest IRA Mistake You Can Make During Divorce?"},"content":{"rendered":"

Unfortunately, mistakes made with retirement funds and IRA distributions are not uncommon, even when experienced divorce attorneys<\/a> are involved. What many people do not realize is that there are only two ways to transfer IRA assets without tax consequences, and this does not include taking a distribution from the IRA and transferring those funds to a checking account, a common mistake that can result in people, years later, finding themselves stuck in tax court.<\/p>\n

There are two ways to make a tax-free transfer of IRA assets during a divorce proceeding: change the name of the IRA to the ex who is receiving it, or directly transfer your IRA assets to the IRA that your ex owns. Below, we discuss the process in greater detail.<\/p>\n

Your Divorce Attorney\u2019s Role<\/strong><\/p>\n

It is your divorce attorney\u2019s job not just to draft and review the divorce decree, but also to assist you in actually transferring any IRA funds to comply with the decree. Your attorney can also assist you in ensuring that the divorce decree is specific enough regarding how and when assets are split, as well as who is paying any fees and how. The date in particular is crucial, as some IRA assets fluctuate in value. Any mistakes made during this process can be costly, and sometimes unfixable.<\/p>\n

The Process<\/strong><\/p>\n

This is the general process that is followed for the transfer:<\/p>\n