Tax Tip of the Week*

Retirement Money
There is one key difference between IRAs on one hand, and just about all other plans (profit sharing, pension and the like) on the other hand relevant to retirement funds being carved up in the divorce process. That major difference is that when retirement funds are carved up between divorcing spouses, regardless of age, there is a window when you can receive funds from a qualified retirement plan (profit sharing, pension, 401(k), 403(b), etc.) without penalty; whereas there is no such opportunity with monies coming from an IRA. That is, the age 59 ½ rule, under limited circumstances, does not apply to those qualified plan distributions resulting from a divorce – but they still apply to IRA distributions.