If you have held rollover IRAs for a number of years, then you may decide to split them into different accounts. The rollover IRA is usually associated with shares or financial dividends relating to an employee pension scheme. Rollover IRA plans can include the 401(k) plan, or a Profit Sharing plan. These rollover IRAs are sometimes split when a married couple divorce, or if a family inherit the assets from a parent, and the lump sum needs to be divided.

Agreeing to the Split

The first step in splitting up any shares or assets in the rollover IRAs is to get a documented agreement. This ensures that the splitting is accepted by all parties. When it comes to a divorce, you are obligated by law to split the IRA account as part of the settlement. You will determine the amount in the IRA assets and a document is drawn up.

Liquidating the Assets

Once the documents are signed, you can then proceed to liquidate the assets. You used to have to draw up a QDRO document, but this is no longer necessary. Now, you can transfer the agreed amount into an IRA set up in the other party's name.

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