What's the difference between an Individual Retirement Account and a Qualified Pension Plan?

By Carolyn Grimes
October 31, 2016

Individual Retirement Accounts are retirement accounts that people contribute to that are not connected with their employment at all. They're only in one person's name. Clients often say that they both have an IRA, but that's not true. Individual Retirement Accounts are in one person's name.

Each party can have an IRA and marital money can go into an IRA in one person's name, but it's only in one party's name. A Qualified Pension Plan is something that comes from your employer. These are two different things. The IRAs are not governed by ERISA – the law that governs the employment retirement benefits. IRAs are basically governed by the IRS Tax Code for tax deductible contributions. They are divided not with special court orders but with your final divorce decree and generally a form from your financial house that both parties have to fill out.


Carolyn Grimes is a family lawyer at the law firm of Wade Grimes Friedman Sutter & Leischner PLLC in Alexandria, Virginia. To learn more about Grimes and her firm, visit www.oldtownlawyers.com.

Back To Top

October 31, 2016
Categories:  FAQs

Add A Comment

Comment

Allowed HTML: <b>, <i>, <u>, <a>

Comments

Reason for your Divorce

Why did your relationship end? If there's more than one reason, choose the strongest factor.

Money Problems/Arguments
Physical/Emotional Infidelity
Physical/Mental Illness
Physical/Emotional Abuse
Alcoholism/Addiction Issues
Basic Incompatibility


Copyright © 2017 Divorce Magazine, Divorce Marketing Group & Segue Esprit Inc. All rights reserved. Reproduction in whole or in part without prior written permission is prohibited.