Lawyers and QDRO Specialists Handling Division Of Individual Retirement Accounts

If You Do Not Divide Your Client's IRA Properly, He Or She May Be Subject To Tax And Penalties

Individual retirement accounts (IRAs) do not fall under the Employee Retirement Income Security Act (ERISA) and so do not require a qualified domestic relations order (QDRO) for division. However, if you do not include language about the division of the IRA in the divorce decree, each party may be subject to penalties and taxes.

To protect your client, work with QDRO Preparations, LLC. We know the methods available to prevent any penalties when transferring part or all of an IRA from one spouse to another. Our attorneys and QDRO specialists can help you include the necessary language in your settlement agreement, or introduce it in court, so it appears in the final divorce decree.

It Is Not About The Type Of Account, It Is About How It Is Done

While dividing an IRA seems very easy, there are nuances you must know to protect your client. Most plan administrators will require that language about the transfer of part or all of an IRA is included in the divorce decree to allow it to be tax free. The easiest way to make this transfer is directly from trustee to trustee.

You want to make sure the divorce decree specifies who, if anyone will be taxed or penalized for a distribution from the IRA, depending on how the funds are taken. If you fail to do this, your client may end up with a financial outlay he or she was not anticipating.

Our lawyers and QDRO specialists will work with you to ensure everything is in order for your client's unique situation. Our team is trained in the various methods for dividing retirement accounts so the individuals we, or the attorneys who we work with, represent receive the benefits they agreed to.

Let Us Help You Divide Your Clients' IRA And Other Retirement Accounts

Call us at 205-704-2701 or contact us online to talk with us about your clients' needs.