QDRO for ex-spouse
Hello. I’m recently divorced and have to give my ex-spouse part of my retirement. I have several accounts, but one has nearly the exact amount that I need to pay him through the QDRO. I’ve heard it’s a bad idea to empty a retirement account because if the market drops, the account could go negative. What amount is safe to keep in the account for a buffer? Thank you
Terry Says
Honestly, I don’t think it matters. BUT, you need to handle this carefully with the IRA custodian, under the court order– OR you could get stuck with a huge tax bill (and your spouse could lose the tax deferral).
And if his payment wipes out that IRA, because of the court order, then that’s OK. Just focus on investing your remaining IRAs.
