Tax penalties

IRA balances are up, and so are divorces, particularly among baby boomers. These so-called gray divorces have roughly doubled over the past 25 years, according to the Pew Research Center.

When a tax-deferred account is part of an estate, failure to follow the tax rules correctly can result in a financial disaster.

Now harsh penalties and taxes on late 60-day rollovers from company plans and IRAs can be avoided, but beware: There are some rollover mistakes that still cannot be fixed.

Knowing how and when to withdraw can save clients big in their golden years.