What kind of benefits could I expect under a QDRO?

Brittany from Brooklyn, NY asks, "What kind of benefits could I expect under a QDRO?"

Pension Evaluators® at Troyan Inc.® answers, "The amount, type and timing of benefits payable under a QDRO will depend on your individual circumstances and the specifics of the retirement plan and how the QDRO is written. However, there are a few general principles which can give you an idea of the range of possibilities.

  • A plan must be a retirement plan in order to be part of a QDRO.
  • A QDRO cannot change the basic rules of the retirement plan. For example, a QDRO cannot require a plan to increase benefits or require the plan to provide an option not already a part of the plan. The scope of the plan will control the options available to be considered under a QDRO.
  • A QDRO can require your spouse’s retirement plan to assign your spouse’s benefits to you or your dependent child.
  • A QDRO can assign part or all of your spouse’s benefits to you (or to others).
  • The benefits may not be payable until your spouse (ex-spouse) becomes eligible for benefits (i.e., retires or dies)
  • When a QDRO splits a benefit by assigning a portion of it to an alternate [you or your child(ren)] you are treated by the plan as if you were a participant.
  • If you are a spouse or former spouse, your benefit under a QDRO will be taxable even if the payment is being made to you in place of child support (which is otherwise not taxable)
  • If you, as a former spouse, receive a benefit you can defer the tax by rolling the amount over into an individual retirement account (IRA) within 60 days. QDRO Required
  • If the “Alternate Payee” is someone other than the spouse of the plan participant (such as the child of the participant), the participant pays the tax on the payments.
  • Protection for the Participant becoming Disabled is often ignored and can cause serious financial harm if avoided in the QDRO."

Pension Evaluators® at Troyan® QDRO Consulting offers expert QDRO outsourcing services to divorce attorneys and mediators, as well as retirement plan administrators.
Divorce attorneys/mediators – You can rely on Pension Evaluators® at Troyan, Inc.® to draft QDRO documents correctly and promptly for your clients, and obtain pre-approval by the plan administrator. We will be pleased to work with you and your law office, or directly with your clients (after the divorce is finalized by your offices) in the QDRO process.

QDRO Pre-Approval Guaranteed!

Just click here to begin the process to begin the application process forms on this site (or direct your client to do so), along with prepayment of our fee, either by check or credit card (online). For more information, call to speak with our QDRO experts at 800-221-0706 and reference the state for your Divorce matter for discussions.

DISCLAIMER: Any legal information on this blog has been prepared by Troyan from informational purposes only and should not be construed as legal advice. The material posted on this website is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Note that sending an e-mail to Troyan does not create an attorney-client relationship, and none will be formed unless there is an agreement between the firm and the individual.