Your QDRO to Protect Your Retirement
November 20th, 2009
If you are divorcing, it is likely that half of your retirement account is one of the biggest assets that will need to be divided. Using a QDRO can allow your ex spouse to withdraw their share of the money and roll it into his or her own IRA. This can continue to delay tax on the money until your spouse is ready to take out their portion and retire. This is important, because if this money is distributed without a qdro, taxes will have to be paid on the money immediately, and you will likely be paying on the money that will actually go to your ex spouse and may even be hit with a penalty for withdrawal before a certain age.
Entry Filed under: Miscellaneous