Posts Tagged ‘QDRO; Qualified Domestic Relations Order; Retirement’

QDRO stands for Qualified Domestic Relations Order. QDRO’s are required to divide and transfer monies from one retirement plan to the spouse who was not named on the retirement plan. A QDRO is a complicated document and should be drafted by an attorney. QDRO’s are governed by federal law known as ERISA, and must be in place otherwise the retirement plan will lose its tax deductible status from the IRS. The QDRO should be pre approved by the Plan Administrator before submitting to the Judge, otherwise you will pay for a redraft and an Amended QDRO to be submitted to the Judge.

QDRO’s take time, as plan administrators are notoriously slow. Add to the normal court processing time, it could be more than six months for a QDRO to weave its way through the plan administrator, through the court and then back to the plan administrator for the actual transfer. QDRO do not result in quick money.


Read Full Post »