Divorce and IRA distributions
When a couple divorces and it’s time to divide their assets, the funds stashed in a qualified retirement account are often a major part of their holdings. So it’s not unusual for part of that account to be awarded in “qualified domestic relations order (QDRO),” the official name for who gets what.
When a spouse is given this award, her wisest course is to roll the funds over into an IRA or other qualified retirement plan in her own name. The funds could remain untaxed until she converted the money into a Roth account or until she turned 70 1/2, at which time she would need to start minimum distributions.
For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.
He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.
An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.
