A retirement plan participant’s spouse, former spouse, child or other dependent who has a right to receive all, or a portion of the participant’s retirement benefits under a Qualified Domestic Relations Order (QDRO).
Question: if agreement is with Proprietary firm but party wants payment in Proprietary owner's name is legally correct? First party - Proprietary firm name XYZ and owner name is PQR
Can i issue the cheque in the name of PQR as alternate payee of XYZ, in this case my agreement is valid ?
Answer: You are on safer side (legally I mean & avoid future litigations), if you issue the cheque in the name of the Prop. firm. ie. XYZ.
But if you have long standing relationship with the proprietor, then based on faith you can issue cheque in owner's name. ie. PQR. But legally this is invalid, because the agreement is between the company & you, and not between the owner & you.
In civil engg. field this type of transactions are common.
Question: After you have a signed(by jugde) & certified copy of a QDRO, who do you submit it to? Is it already in affect sense it was signed by a judge or should you as the alternate payee send it to the company that is holding your spouse/parents retirement money to let them know you get a percentage of it?
please only answer if you have some knowledge on the subject
Answer: You will need to send a certified copy of the QDRO directly to the company holding the retirement account or to the authorized third-party administrator (TPA) (if there is a TPA involved in the process.) The company must have an original certified paper copy - no facsimiles or other copies. I would send it to the company via certified mail. As an alternate payee, you should be sure to to consult your tax adviser or financial professional prior to submitting the QDRO, so you can better understand your own tax implications before you receive any kind of distribution.
Question: QDRO Verbage...what does it mean? I am going through a divorce and the divorce was final on 11/23/09. On 2/5/10, I received a notice from my ex's attorney stating that he had just drafted the QDRO. In it is the following verbage: "The Alternate Payee is herby assigned and awarded 31.25% or XXXX of the Participant's total account balance under the Plan as of October 27, 2009, as adjusted for subsequent investment gains and losses from such date until the date as of which distribution to the Alternate Payee shall be paid."
My question has to do with the dates and the last part of the sentence. Does this mean that every dime I have put in since October 27th, 2009 she is entitled to as well? I should probably stop contributing to my 401(k) until this is all final? Any help would be appreicated.
Answer: Hire a lawyer to advise you on this!
Question: How do I go about getting the money im owed for a QDRO? Recieved a letter saying im owed 87,671.40? My dad use to play in the NFL but once him & my mother got divorced he didn't really pay his child support. My mom got a letter about a QDRO that im owed(I am the alternate payee) after he has retired which i think he already has. I dont know what to do to get the money, or file, or anything. Im very confused, does anyone know the steps I should take? should I call a lawyer? Will it cost me anything? Thanks
The letter says it is owed to me, I am 22 years old and it lists me as the alternate payee, not my mother
Answer: It's your moms money, none of it is yours. With that amount of money owed, you better hope he stays in the country after retirement otherwise you won't see a red cent. I would ask your mom why she's never take legal action in collecting, I'm willing to bet there's a reason behind this.
Your mom got a letter that "shes" owed.
Alternate payee meaning if your mom doesn't accept it goes to you, your mom will gladly accept 88k. The money is for raising you, paying bills all while you were a child. If you mother chooses to give you none of it, that's within her discretion.
Question: Will you receive a 10% penalty if you use money from a QDRO prior to the age of 59 1/2? I did receiv a lump sum of money from a QDRO. They deducted 20% Fed & State tax. I am going to file my income 2009 income tax. Do I have to pay 10% penalty on this also?
According to IRS Site if judge order QDRO then I don't have to pay 10% early withdraw penalty. Is this true?
"Retirement Topics - Tax on Early Distributions
Generally, the amounts an individual withdraws from his or her IRA or other qualified retirement plan before reaching age 59½ are called ”early” or ”premature” distributions. Individuals must pay an additional 10% early withdrawal tax and report the amount to the IRS for any early distributions, unless an exception applies.
Exceptions: There are several exceptions to the age 59½ rule. Even if individuals receive a distribution before they are age 59½, they may not have to pay the 10% additional tax if they are in one of the following situations.
* They have unreimbursed medical expenses that are more than 7.5% of their adjusted gross income.
* They are disabled.
*The distributions are not more than their qualified higher education expenses (IRA only).
* The distribution is made to an alternate payee under a QDRO
Answer: If you roll it over you pay nothing otherwise it is like any other early withdrawal.
