A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Chadmere Capital Inurance and Financial Services, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Chademere Capital Insurance and Financial Services
(803) 242-1050

CLOSE

Book or Change Your Appointment

IRAS IN A DIVORCE AND ROTH CONVERSIONS: TODAY’S SLOTT REPORT MAILBAG

By Sarah Brenner, JD
IRA Analyst

Question:

I have a question about an IRA split between my husband and me. I got half of his retirement IRA and I was wondering if I am responsible for the taxes if I was to withdraw the funds. Also, if I didn’t want all the funds in the account before I opened it, could I tell the custodian to give me a portion and put the rest in? If I could, would I be charged a penalty of 10%?

Thank you

Answer:

Handling an IRA in a divorce can be complicated. If you are awarded part of you ex-spouse’s IRA, the correct way to proceed is to directly transfer the IRA funds to an IRA in your name. This is a non-taxable transaction. If you then take distributions from this IRA, those distributions will be taxable to you. They will also be subject to the 10% early distribution penalty if you are under age 59 ½.

Question:

I just made my SEP contribution for the 2018 tax year. Can I convert these funds? If so, can I do it immediately or is there a waiting period?

Justin

Answer:

Hi Justin,

SEP IRA funds are available for conversion to a Roth IRA. There is no waiting period, so you can go ahead and convert those funds as soon as you want.

https://www.irahelp.com/slottreport/iras-divorce-and-roth-conversions-todays-slott-report-mailbag

Ready To Take

THE NEXT STEP?

 

For more information about any of our products and services, schedule a meeting today.

Schedule a Meeting
Or give us a call at (803) 242-1050

Investment advisory services offered through Foundations Investment Advisors, LLC (“Foundations”), an SEC registered investment adviser. Nothing on this website constitutes investment, legal or tax advice, nor that any performance data or any recommendation that any particular security, portfolio of securities, transaction, investment or planning strategy is suitable for any specific person. Personal investment advice can only be rendered after the engagement of Foundations, execution of required documentation, and receipt of required disclosures. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Foundations and its advisors are properly licensed or exempted. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #175083.

 ADV Part 2A & Form CRS              Privacy Policy