Qualified Domestic Relations Orders (QDRO)
A Qualified Domestic Relations Order is an from the court to a retirement plan administrator spelling out how the plan's benefits are to be assigned to each party in a divorce.
This can be vital in a divorce simply because if something is omitted from it, you cannot get it- even if the plan says you are entitled to the money or benefits. For an order dividing a retirement plan to qualify as a QDRO, it usually must specify the following:
- Name and last known mailing address of the participant
- Name and address of each alternate payee
- The amount or percentage of the participants benefits that is to be paid to each alternate payee
- The number of payments or the period to which the order applies
- The name of the plan to which the order applies
Some plans are not subject to QDROs. In these cases, some plans have no administrators so the plan participant administers them. Be sure to check with a qualified Family Law attorney to determine if a QDRO is needed in your dissolution of marriage.
Once a Pension plan vests and the employee reaches a certain age, you will most likely be taxed on the benefits you receive. Discuss these issues with a skilled Family Law attorney.
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