If one spouse is allocated a portion of the other spouse s IRA fund and decides to keep the cash and not place the money into another IRA within 60 days, will that spouse have to pay taxes or a penalty on the cash?

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If one spouse is allocated a portion of the other spouse s IRA fund and decides to keep the cash and not place the money into another IRA within 60 days, will that spouse have to pay taxes or a penalty on the cash?

April 26, 2017allocated cash decides fund IRA money portion s spouse

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If one spouse is allocated a portion of the other spouse s IRA fund and decides to keep the cash and not place the money into another IRA within 60 days, will that spouse have to pay taxes or a penalty on the cash?

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score 0 · Answer 1 · 2011-03-22T23:57:28+00:00

Yes. That spouse will have to pay taxes on the cash. Likewise, an IRA is not divisible by a QDRO (Qualified Domestic Relations Order). Therefore, if the spouse is under the age of 59 2, the that spouse will have to pay the 10% penalty in addition to the taxes on the amount taken out of the IRA.

If one spouse is allocated a portion of the other spouse s IRA fund and decides to keep the cash and not place the money into another IRA within 60 days, will that spouse have to pay taxes or a penalty on the cash?

1 Answer

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