Retroactive QDRO of Rollover IRA

[Guest MonicaM]

The participant took his pension in a lump sum and rolled it over into IRA. Divorced 9 years later. Non-marital portion of pension was first 11 years of employment. Married 33 years at time of filing. Participant wants to QDRO IRA according to original plan. (pension had a 5&5). Participant also began taking withdrawals from IRA 3 years ago. at age 59 1/2.[ Can the IRA be QDRO'd after 9 years? topic="QDRO"

[QDROphile]

Division of an IRA is not subject to section 414(p). IRAs can be divided in connection with dissolution of marriage. Federal law does not prescribe any allocation of an IRA balance between the owner and the former spouse. I think it preferable (and maybe necessary) to award a former spouse a single sum. You can arrive at the amount based on whatever theory you like, assuming you can do the math to arrive at the single sum and either get the parties or the judge to agree.

[mbozek]

The participant took his pension in a lump sum and rolled it over into IRA. Divorced 9 years later. Non-marital portion of pension was first 11 years of employment. Married 33 years at time of filing. Participant wants to QDRO IRA according to original plan. (pension had a 5&5). Participant also began taking withdrawals from IRA 3 years ago. at age 59 1/2.[ Can the IRA be QDRO'd after 9 years? topic="QDRO"

IRAs are not subject to QDRO rules since they are not assets of a qualified plan. IRAs can be divided in any amount provided in the divorce decree or property settlement and a portion or all of the IRA can be transferred tax free to an IRA of the other spouse. See Pub 590, P28.

[Guest MonicaM]

The participant took his pension in a lump sum and rolled it over into IRA. Divorced 9 years later. Non-marital portion of pension was first 11 years of employment. Married 33 years at time of filing. Participant wants to QDRO IRA according to original plan. (pension had a 5&5). Participant also began taking withdrawals from IRA 3 years ago. at age 59 1/2.[ Can the IRA be QDRO'd after 9 years? topic="QDRO"

IRAs are not subject to QDRO rules since they are not assets of a qualified plan. IRAs can be divided in any amount provided in the divorce decree or property settlement and a portion or all of the IRA can be transferred tax free to an IRA of the other spouse. See Pub 590, P28.

Follow up question: this pension has been in a rollover IRA combined with the participants Savings plan for 9 years. The non-marital portion of the work history is 11 years before the marriage (total of 36 years employment). At the time of retirement the participant was married for 24 years. However, at the time of filing the participant was married for 33 years. Realizing that the IRA will be divided by decree, is there any precedent for ruling in this particular situation regarding retro. Is it feasible that the pension be divided:

1. THe AP should be paid for 33 yrs of marriage/36 yrs of employment to account for the post retirement years

2. The participant can present the value of the pension at the time of marriage.

[mbozek]

The participant took his pension in a lump sum and rolled it over into IRA. Divorced 9 years later. Non-marital portion of pension was first 11 years of employment. Married 33 years at time of filing. Participant wants to QDRO IRA according to original plan. (pension had a 5&5). Participant also began taking withdrawals from IRA 3 years ago. at age 59 1/2.[ Can the IRA be QDRO'd after 9 years? topic="QDRO"

IRAs are not subject to QDRO rules since they are not assets of a qualified plan. IRAs can be divided in any amount provided in the divorce decree or property settlement and a portion or all of the IRA can be transferred tax free to an IRA of the other spouse. See Pub 590, P28.

Follow up question: this pension has been in a rollover IRA combined with the participants Savings plan for 9 years. The non-marital portion of the work history is 11 years before the marriage (total of 36 years employment). At the time of retirement the participant was married for 24 years. However, at the time of filing the participant was married for 33 years. Realizing that the IRA will be divided by decree, is there any precedent for ruling in this particular situation regarding retro. Is it feasible that the pension be divided:

1. THe AP should be paid for 33 yrs of marriage/36 yrs of employment to account for the post retirement years

2. The participant can present the value of the pension at the time of marriage.

Amount of AP's interest in IRA will be determined under state equitable distribution or community property law.