Transfer Incident to Divorce
Tax-free property transfers between spouses pursuant to divorce under IRS rules.
Example
The IRA transfer incident to divorce avoided early withdrawal penalties.
Canadian Equivalent
In Canada, this is referred to as Rollover Provision (Income Tax Act s.73 allows tax-deferred transfers between spouses/ex-spouses).
Related Terms
ira-transfertax-consequences-of-divorceproperty-settlement