Bob
<bobhasanaccount[at]yahoo.com> writes:

- quote -

Nope, it's fair game.

- quote -

See IRC 408(d)(6). Transfers incident to divorce are not a taxable event. You
should also be able to find this in IRS Pub 590.

- quote -

Once the money is in the account, there's no difference between SEP money and
any other contribution to a traditional IRA.

Phil Marti
Topeka, KS

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General questions on this subject.

I'll be going through a divorce some time soon. My future ex
and I both have SEP-IRAs and IRAs. My SEP is by far the
largest (low 6 figures) and her SEP low by comparison (low
5). IRA's are relatively small and moderately equal.

Here are the questions:

- is my SEP sheltered by Federal Tax law ? I'm not asking
anyone to speculate on what a (MA) Judge will rule, I'm just
wondering how far the IRS/Feds take the "can't be touched"
rule ? Will they hold that rule so that my SEP cannot, no
matter what, be broken by a State judge ?

- is there any special provision for pulling money from a
SEP in a divorce which eliminates or reduces penalties?
Perhaps if a Judge orders it there is an exception?

- are there any other exceptions for pulling money from a
SEP (with the note that I roughly understand the "over
remaining life" clause).

Thanks,
Bob

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