My question involves a marriage in the state of: nevada
background- I have two 401k accounts: one from a previous employer that I didn't roll over to a new plan and another one that is with my current employer
In our uncontested divorce, since both 401k accounts currently had approx the same amount of money in them, I agreed to transfer the one at the previous employer to my ex-wife.
Now that the divorce decree is almost final with the judge, i've been trying to research the best way to transfer the proceeds in that 401k to her without either of us being hit with early withdrawal penalties or other tax consequences. we're amicable on all things so we have full cooperation going for us at least.
About the account in questions. It's a Roth 401K with about $17k in it. I've read up on QDROs and i'm not 100% certain it's the best route given our situation. I don't need to divide the assets in this account with her, she is in essence getting 100% of whatever is in there.
Since it's a Roth 401k, my first plan was to open a new Roth IRA at another institution under as "My name OR Her name" , then just do a the normal rollover paperwork with where the 401k is currently being administered to get the funds out of a 401k. Then once everything was moved (and hopefully by doing it this way, avoiding any taxation issues or penalties), removing my name from that IRA so it's just solely in her name.
Even easier would be to have her open that new IRA in just her name and then do the rollover into it, but I'm not sure if they will process a rollover without having my name at least somewhere on the receiving account.
any thoughts or advice on how best to get this done are greatly appreciated. thanks in advance!