Rollover of IRA to ex-wife

[dyne]

I was asked if an ex-husband rolled over or transferred an IRA to his ex-wife could he
deduct this. I reseached this and this is what I understand:
IRC 72(t)(2)(B) allows a QDRO or qualified domestic relations order in which a judge
orders that an IRA be rolled over from an ex-husband to an ex-wife as alimony can be
NON-TAXABLE to the ex-husband and NOT deductible as alimony. It is a wash.
This will be a rare occurance for us to encounter.

In all other cases it appear to be a BAD idea for the ex-husband to roll over or transfer an IRA to an ex-wife. It WILL be taxable to the ex-husband and if he is less than 59 1/2 years old he will be subject to the 10% early withdrawal penalty also. It is likely that this will NOT qualify for an alimony deduction as it probably would not be a periodic payment and it might not be considered as being a CASH contribution. It is more likely a property settlement payment. I would appreciate all comments especially regarding the possible deductability of the rollover or transfer as alimony.

[ChEAr$]

Seems to me that if husband had any basis in the IRA atall, it could be deemed alimony.
and thus deductible as such.

[Dusty2004]

I would think the basis would transfer over to the wife with no alimony unless it was in the divorce decree. This is part of settlement of marital assets unless specified.

Dusty