IRA rollover to ex-wife as Alimony

[dyne]

My understanding of an ex-husband who rolled over or transferred an IRA to an ex-wife is as follows:
IRC 72(t)(2)(B) allows a QDRO or qualified domestic relations order by a judge in a divorce decree which states that an IRA be rolled over from an ex-husband to an ex-wife to be NOT taxable to the ex-husband and NOT deductible by him either. This will be rare.
In all other cases it is probably a BAD idea. The IRA rollover or transfer WILL be taxable to the ex-husband PLUS the 10% penalty if done before he reaches age 59 1/2. Also the deductibility of the amount rolled over or transfered is questionable. It would not be CASH as required and it would not be a periodic payment so would probaby NOT be deductible as alimony. It would more likely be considered to be a Property Settlement. Am I understanding this correctly?

[Davc]

QDROs don't apply to IRAs. And when they are relevant most attorneys are competent enough to do one.*

You're basically correct in the second paragraph. This is a good summary:

http://www.nysscpa.org/cpajournal/1996/0996/features/Tax.html

* Please note the compliment to the members of the bar. The next one is scheduled for April 1, 2012.

[New York Enrolled Agent]

My understanding of an ex-husband who rolled over or transferred an IRA to an ex-wife is as follows:
IRC 72(t)(2)(B) allows a QDRO or qualified domestic relations order by a judge in a divorce decree which states that an IRA be rolled over from an ex-husband to an ex-wife to be NOT taxable to the ex-husband and NOT deductible by him either. This will be rare.
In all other cases it is probably a BAD idea. The IRA rollover or transfer WILL be taxable to the ex-husband PLUS the 10% penalty if done before he reaches age 59 1/2. Also the deductibility of the amount rolled over or transfered is questionable. It would not be CASH as required and it would not be a periodic payment so would probaby NOT be deductible as alimony. It would more likely be considered to be a Property Settlement. Am I understanding this correctly?

Not fully.

You don't use a QDRO with IRAs.

What the divorce decree will do is direct one spouse to transfer all or part of the IRA into an IRA account of the other spouse. This trustee-to-trustee transfer will not create a taxable event for either spouse. See IRC §408(d)(6) . After that you have separate IRAs and the normal distribution rules (including the 10% penalty) hold.

[dyne]

Thank You!