If a court has awarded part or all of your Traditional or Roth IRA to your former spouse as part of a divorce or legal separation, this is treated as a tax-free transfer, not a taxable distribution. There's no early withdrawal penalty, and the amount isn't counted as your income.
The assets must move into an account of the same type. Traditional IRA funds go into your former spouse's Traditional IRA, and Roth IRA funds go into your former spouse's Roth IRA.
What you need to do
Reach out to our Member Support team with:
A copy of your divorce decree or legal separation agreement
Any specific instructions in that agreement about how the IRA should be divided
Your former spouse's contact and account information (so we can help set up or confirm their receiving IRA)
What Member Support handles
Once we have your agreement, we'll help you complete the IRA Distribution Request form and the Letter of Acceptance your former spouse will need to sign to receive the assets into their own IRA.
If you have questions along the way, you can always reach out to our support team via email at support@public.com, or via chat in the Help Center.
This information is for educational purposes only and is not tax or investment advice. Consult your tax advisor for individual considerations.