Hi All -
I received a question from someone who is required to give $X to his ex from his Roth IRA as a part of their divorce. However he doesn't have enough in the Roth to do that - apparently he withdrew most of what he had in there.
Can he replenish the Roth? What are the tax effects on the spouse based on those Roth IRA funds (presumably kept in an IRA) received as a part of a divorce?
Thanks.
The easy part of your question is that he cannot replenish the Roth IRA unless he is still within the 60 day rollover period. As to everything else, the solution is something the lawyers will have to work out. Bottom line, splitting the Roth IRA (or any other account) is a property settlement and usually has no income tax ramifications.
Ira Smilovitz, EA
Thanks, that's what I figured. I was just a little confused by the concept of giving a spouse more in an IRA than is actually in it. Bottom line is that he can't do that.
IANAL, but I imagine it would be treated similarly to being required to give the ex a car, and then discovering that the car has been sold.
If he withdrew the funds after the decree was finalized, he would be in trouble.
h2
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