${site.data.firmName}${SEMFirmNameAlt} Main Menu
Call Today: 855-805-0595

Protecting the ability to retire after divorce

48441212_S.jpgWhen Missouri couples want to get divorced, it is important for them to think about their future abilities to retire. Retirement accounts must also be divided between the spouses in an equitable manner, but the division of the accounts may require special considerations and paperwork.

As an example, if a couple has $20,000 in a Roth IRA and $20,000 in a 401(k), it is important to remember that the contributions to the Roth IRA have already been taxed upfront. The contributions that have been made to the 401(k) will be taxed when they are withdrawn, meaning that the $20,000 balance in the 401(k) is worth less than the balance in the Roth IRA.

Some types of accounts require special orders called qualified domestic relations orders. These orders direct the custodians of these plans to divide the assets and tell them how much should be paid to the recipients. If spouses withdraw money during their divorces and without these orders, they will have to pay the 10 percent early withdrawal penalties if they have not reached age 59 1/2.

Dividing assets such as retirement accounts should be undertaken with care in order to avoid potential tax consequences. If the withdrawals are made incorrectly or too early, the account owners may be forced to pay substantial penalties and taxes. People may benefit from talking to their divorce attorneys about their future retirements. Attorneys may advise their clients how they might make adjustments following their divorces so that they can retire on time. They may also help to draft the QDROs that will be needed to divide qualified plans and review the court's orders for the division of IRAs to make certain that they comply with the guidelines of the Internal Revenue Service.

No Comments

Leave a comment
Comment Information

Contact Our Team To Get Help Now

Tell us about your case and we’ll get back to you promptly.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Stange Logo

Stange Law Firm, PC
115 Lincoln Place Ct.,
Se. 101
Belleville, Illinois 62221

Toll Free: 855-805-0595
Fax: 314-963-9191
Law Office Map

DHQ | Divorce Headquarters Divorce
Headquarters ® App Download The App
Questions? Live Chat Pay Your Bill Online
States of Service

Other Office Locations

  • Saint Louis County: 120 S. Central Ave., Suite 450, Clayton, MO 63105: Clayton Office
  • West County: 16024 Manchester Rd., Suite 103, Ellisville, MO 63011: Ellisville Office
  • Jackson County: 256 NE Tudor Rd., Lee's Summit, Missouri 64086: Lee's Summit Office
  • Jefferson County: 16 Municipal Drive, Suite C, Arnold, MO 63010: Arnold Office
  • St. Charles County: 2268 Bluestone Drive, St. Charles, MO 63303: St. Charles Office
  • Franklin County: 5 S. Oak St. Union, MO 63084: Union Office
  • Lincoln County: 20 Centerline Drive, Troy, Missouri 63379: Troy Office
  • Boone County: 1506 Chapel Hill Rd., Suite H, Columbia, MO 65203: Columbia Office
  • Greene County: 901 E. St. Louis, Suite 404, Springfield, Missouri 65806 Springfield, MO Office
  • St. Clair County: 115 Lincoln Place Ct., Ste. 101, Belleville, IL 62221: Belleville Office
  • Madison County: 5 Club Centre Ct., Suite A, Edwardsville, Illinois 62025: Edwardsville Office
  • Sangamon County: 400 S. 9th St., Suite 100, Springfield, IL 62701: Springfield Office
  • McLean County: 1012 Ekstam Drive, Suite 4, Bloomington, IL 61704: Bloomington Office
  • Johnson County: 7300 West 110th Street, Suite 560, Overland Park, KS 62210: Overland Park Office
  • Sedgwick County: 2024 N. Woodlawn Street, Suite 407, Wichita, Kansas 67208: Wichita Office
  • Shawnee County: 800 SW Jackson Street, Suite 812, Topeka, Kansas 66612: Topeka Office
  • Monroe County: 116 W. Mill St., Waterloo, IL 62298 (by appt. only): Waterloo Office
  • St. Louis City: 100 S. 4th St., #549, St. Louis, MO 63102 (by appt. only): St. Louis Office
  • Jackson County: 2300 Main St., #948, Kansas City, MO 64108 (by appt. only): Kansas City Office

The choice of a lawyer is an important decision & should not be based solely upon advertisements. See additional disclaimers here.