2007-05-22 09:57:27 · 5 answers · asked by yldrice123 2 in Business & Finance ➔ Taxes ➔ United States
She was allowed to take money out of my IRA by order of the court. She did so and spent it on frivolous items. The court stated that if I was unable to pay her the support monies during the trial, she would be allowed to take the money from my IRA,
2007-05-22 12:51:00 · update #1
Unless the withdraw is part of a court ordered property settlement, she can't legally withdraw anything from your IRA. If it is, she is responsible for any penalty and tax due. If she had a competent adviser, she roll the money into an IRA in her name to avoid the penalty.
2007-05-22 12:21:13 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
No one can take money out of your IRA without your permission. The two exceptions are that the IRS can levy your IRA, or a court can order a division of the money due to a property settlement from a divorce.
Is it the case that money in the IRA was given to her in a property settlement? If so, then she could roll it over into her own account without tax or penalty. If she withdraws money from what is now her IRA per the property settlement, she will owe taxes and possibly a penalty depending on her age and circumstances.
And if there were a division of the IRA because of a divorce, then the money that was in your account that was given to her would not be taxed to you.
Added later: It appears that she did not transfer your IRA money into her own IRA, she just took a distribution. She will receive a 1099R showing an early distribution. She will owe tax and penalty if she does not meet an exception (divorce is not an exception).
2007-05-22 17:30:17 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
You leave out a lot of information. You say YOUR IRA. Was this a joint account and was she authorized to withdraw funds? Are you legally divorced from your ex?
Perhaps the IRA provider made an error in letting her have the funds.
If she legally had the right to half of the funds, I am pretty sure she owes the taxes and penalties.
2007-05-22 17:01:59 · answer #3 · answered by united9198 7 · 0⤊ 1⤋
how did ex-wife get money from your IRA without you being dead? you have problems with your bank/ira custodian. this is fraud. only you can take if from your ira, and then you pay the takes. your wife was not a joint owner. she was a beneficiary. did she tell the bank/custodian you are dead?
2007-05-22 17:04:57 · answer #4 · answered by don't plagiarize 7 · 1⤊ 0⤋
Your question is unclear. Nobody should be able to withdraw money from your IRA but you or the IRS.
2007-05-22 19:07:06 · answer #5 · answered by acmeraven 7 · 0⤊ 1⤋