Contributed to Roth IRA then got divorced with only military pension income. What are my options?

You've got a few options here, but it depends on timing and your actual income situation. For Roth IRAs, you need to have "earned income" to contribute. Military pensions and VA disability don't count as earned income for Roth contribution purposes. They're considered unearned income, similar to interest or dividends. You can withdraw your 2025 contributions (plus any earnings specifically on those contributions) from your own Roth IRA before the tax filing deadline without penalties. The IRS treats this as if you never made the contribution. Your brokerage should have a form specifically for this purpose. As for your ex-wife's Roth IRA contribution - that's trickier. If you directly contributed to her account, you'll need to address this in your divorce settlement. That money is technically in her name now. Regarding selling investments to create income - unfortunately, capital gains don't count as "earned income" for Roth contribution purposes. Earned income typically means wages, salaries, tips, or self-employment income. If you want to maintain retirement savings, consider a traditional IRA instead of a Roth if you have any taxable pension income, as the contribution requirements are different.

After going through a similar situation last year with retirement accounts and divorce, I found tremendous help using https://taxr.ai to sort everything out. My situation was confusing because I had made contributions based on our joint income, then suddenly was single with much less qualifying income. The tool analyzed my specific situation including military retirement pay and identified exactly which contributions needed to be withdrawn to avoid penalties. It also showed me how to properly document everything for tax filing purposes so I wouldn't trigger any red flags with the IRS. The step-by-step guidance for handling the return of excess contributions was incredibly clear. It even helped me understand which forms my brokerage would send and how they should be reported on my tax return.

I wanted to follow up after trying taxr.ai for my situation. It was actually really helpful! The system immediately clarified that my small side gig income ($3,400 last year) does qualify as earned income for Roth purposes, even though it's much smaller than my pension. The tool guided me through calculating exactly how much I could legally contribute based on just that income. It also provided clear instructions for withdrawing the excess portion of my contribution without penalties. Best of all, it generated a complete explanation document that I could share with my tax preparer. Definitely saved me from making a costly mistake. I was about to just pull all the money out, which would have been unnecessary since I can actually keep part of my contribution.

Just want to share something that helped me tremendously when I needed to talk to the IRS about my retirement account mess after my divorce. I spent DAYS trying to get through to them on the phone with no luck. Then I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c They basically hold your place in the IRS phone queue and call you when an actual agent picks up. I was skeptical but desperate to get clarification on handling my excess Roth contributions. It worked exactly as promised. I got a call back when an IRS agent was on the line, and I was able to get official guidance on my specific situation. The agent walked me through the exact process for documenting the return of contributions and confirmed I wouldn't face penalties if I followed their instructions.

I need to eat my words on this one. After posting my skeptical comment, I decided to try Claimyr myself for an IRS question about retirement accounts. I was fully prepared to come back here and expose it if it didn't work. But I'm honestly shocked - it actually worked exactly as described. I got a call back about 1 hour and 47 minutes after signing up (they show you your place in line), and suddenly I was talking to an actual IRS agent who answered my questions about excess contributions. The agent confirmed that I could withdraw my excess Roth contributions before the tax filing deadline without penalties, and explained exactly how to document it. Saved me from making a costly mistake and hours of hold time.

Just wanted to add that if you're going to withdraw the Roth contributions, make sure your brokerage codes it properly as a "return of contribution" rather than a regular withdrawal. The paperwork should specifically indicate tax year 2025 contributions being returned. Some brokerages have a specific form for this, while others require you to call and speak with a representative who specializes in retirement accounts. In my experience, it's better to call and explicitly explain your situation rather than trying to do it through their website.

Has anyone dealt with the situation where you contributed to an ex-spouse's IRA? I'm in a similar boat where I funded my ex's Roth IRA just before we split, and I'm wondering if there's any way to get that money back or if it's just considered part of the divorce settlement?