Legal Question in Family Law in Illinois

Can I distribute funds from an IRA account prior to a divorce settlement as gifts to reduce my overall net worth? If so can I roll it into someone else's IRA to avoid taxes and penalties? If I distribute less than $14,000/person/year can I avoid gift taxes?


Asked on 2/16/15, 8:38 am

1 Answer from Attorneys
Jonathan Shimberg Shimberg and Crohn, P.C.

1- it may well be considered a dissipation of your assets, allowing your spoisue a greater share of the remaining assets.

2- you can only rollover into a spouse;s IRA tax-free. you can not roll over into another person's ira without penalty or tax consequences

3 - a transfer of less than 14K would be gift tax free

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Answered on 2/16/15, 11:18 am


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