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IRA and Divorce

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waata99

Guest
What is the name of your state? MICH

My brother is going through a divorce. He has an self directed IRA which his wife has been pulling money from to live on under a court order. He's in prison as of Dec. 2005, she's filed civil suit, she'll most likely get all of what is in the IRA. My question is...is she at responsible for the taxes due on the disbersments from that account for 2005 and forward?

waata99
 


LdiJ

LdiJ

Senior Member
waata99 said:
What is the name of your state? MICH

My brother is going through a divorce. He has an self directed IRA which his wife has been pulling money from to live on under a court order. He's in prison as of Dec. 2005, she's filed civil suit, she'll most likely get all of what is in the IRA. My question is...is she at responsible for the taxes due on the disbersments from that account for 2005 and forward?

waata99
Click to expand...
Certainly, on an ongoing basis, once the IRA is officially her property, she will be responsible for the taxes.

However it could be tricky for the interim period. It depends on who gets the 1099-R. Hopefully its been structured so that she will receive the 1099-R.
 
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waata99

Guest
update

Should I do his taxes for him asap, or doesn't it much matter until the divorce is settle in the next 2 months?
waata
 
A

abezon

Senior Member
When he files doesn't matter. The key is whether the IRA trustee reports the disbursements under his SSN or hers.
 
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