“Attorney Robert Boyd On What You Need To Know About a QDRO In a Divorce” Authority Magazine
Co-founding Shareholder Bob Boyd was interviewed by Ilyssa Panitz from Authority Magazine about Qualified Domestic Relations Orders (QDRO). In the article, Boyd answered common questions about what divorcing couples in the process of dividing financials and assets, such as retirement plans, need to know about QRDOs.
Unlike the taxes you may incur from selling the marital residence, in a QDRO, the spouse making the payout to the other will not be penalized by the Internal Revenue Service (IRS) for transferring the funds to the other during a divorce. It is standard that the IRS charges a 10% tax penalty on any funds withdrawn from an IRA if the person is under the age of 59 ½. The one receiving the funds can also avoid paying taxes too if those funds are rolled over into their retirement account. It’s a legal mechanism used to transfer certain retirement assets without tax consequences as part of a divorce.
“When a QDRO divides a divorcing spouse’s retirement account, the shares being split from the account must be transferred to an IRA (individual retirement account) for the other spouse,” Boyd told the publication in an interview. “Also, a client must follow up with his or her lawyer to ensure that the QDRO funds have been transferred.”
Authority Magazine features in-depth interviews with authorities in pop culture, business, tech, wellness and social impact. Read the full interview online.