Retirement Plans & Divorce: Attention to Detail is Crucial
The distribution of assets can be one of the most complicated and contentious aspects of any divorce. That applies to the division of retirement accounts, too. Failure to correctly identify the type of retirement plan involved can lead to tax complications down the line.
Distributions from IRAs and Qualified Retirement Accounts are subject to different tax treatments. Understanding the rules that apply to the division of assets from each type of account can help assure that any applicable tax burden is attributed to the correct party. To better understand these differences and their potential tax liabilities, read “How to Split IRAs and Other Retirement Plans During a Divorce.”