Division of IRAs

(Individual Retirement Accounts / Individual Retirement Annuities)

If your case may require the division of an IRA, before contacting PASA, Inc., please explore the options available through the financial advisor associated with the IRA or the custodian company.

You can start the process by submitting the separation agreement / divorce decree to the IRA custodian or advisor to see if anything additional is needed. It is likely the IRA custodian may accept the full separation agreement / divorce decree along with a simple Transfer Form specific to their company.

IRAs are not qualified plans under ERISA, and therefore QDROs do not apply. It has been our experience that IRA custodians may—or may not—require a DRO (a similar document), depending on several factors, including their policies, the IRA type, and the exact wording of the parties’ separation agreement or divorce decree.

Please note most IRA custodians will only accept a percentage or dollar amount (or number of shares) as of the date of transfer; most will not calculate gain/loss on an assignment as of a specific past valuation date.

If the parties cannot divide the IRA through their financial advisor or IRA custodian directly:

If requested, our services would include:

· Research exactly what instrument is needed for the division, whether that be a Transfer Form, Letter of Instruction, or a DRO;

· Offer potential workarounds if the IRA custodian does not allow for a division exactly as worded in the separation agreement or decree;

· Research the distribution options/recipient account requirements;

· Complete the necessary document(s); and

· Submit to the IRA custodian for preapproval (if permitted).