Say one spouse is older than the other spouse; it could be five years or ten years older. Further suppose the older spouse wants to defer the Required Minimum Distribution (RMD) because the couple wants that money to grow in the tax deferred account for a longer period of time.
The solution is the In-Marriage QDRO. Transfer the older spouse’s 401(k) money to an IRA owned by the younger spouse. The numbers can be very significant due to the magic of compound interest and no taxes. As usual, at least $100,000 should be transferred.
Contact me if you want to learn more.
