In John R. Kirkpatrick v. Commissioner, TC Memo 2018-20 , Code Sec(s) 408, John was to transfer funds to his spouse. John took a distribution from the IRA and then wrote a check to his spouse for the amount of the distribution. The IRS determined that John received a taxable distribution. The U.S. Tax Court upheld the IRS. if a taxpayer takes a distribution from an IRA they do have 60 days in which to put the funds into an IRA. By transfering the funds first to his wife, John did not satisfy the 60 day rule. One option would have been for John to make his wife an owner of the existing IRA and then complete a trustee to trustee transfer into an IRA. Attorneys need to keep in mind that separation agreements and court orders do not supersede the Internal Revenue Code. Transfers of property incident to a divorce are tax-free exchanges - except when the funds come from an IRA. The Tax Court has consistently sided with the IRS on this.