QDRO
Whether you need a new QDRO or you need to review an established QDRO for errors, we can help!
(QDRO) QUALIFIED DOMESTIC RELATIONS ORDER
What is a (QDRO) Qualified Domestic Relations Order?
The terms “Qualified Domestic Relations Order” (QDRO) or “Domestic Relations Order” (DRO) are types of orders used to divide retirement plans during a divorce. These orders are used to assign an alternate payee (spouse, former spouse, child, or dependent of the employee) the right to receive all or a portion of the benefits payable with respect to an employee or participant from a plan.
Retirement accounts are typically one of the largest assets being negotiated in a divorce. Do not make a costly mistake in your divorce. Before you finalize your divorce, you should have the language in your agreement reviewed before a domestic relations order is submitted to the plan.
It is important to note that QDROs cannot require a plan to perform a change that is not permitted by the plan. Therefore, the plan ultimately approves or denies the order, so the judgment for divorce must be aligned with the plan’s requirements.
Some of the most popular retirement plans today:
Plans that require a QDRO or DRO are:
- 401(k) , 403(b), and 457 plans
- Profit Sharing Plans
- Money Purchase Pension Plans
- Employee Stock Ownership Plans (ESOPs)
- Savings Plans
- Pensions
- Cash Balance Plans
- Savings Plans
Plans that do not require a QDRO or DRO are Individual Retirement Accounts (IRAs) which include:
- Traditional IRAs, Rollover IRAs, or ROTH IRAs
- Rollover IRAs
- ROTH IRAs
- Employer provided Simplified Employee Pensions (SEPs)
- Simple IRAs.
This step can be incredibly frustrating for clients. Knowing how to obtain all the information and where to obtain the required information can be challenging. At Divorce Logic, our process will lessen the stress of collecting the data.