HCE Posted August 22, 2022 Report Share Posted August 22, 2022 Under our QDRO procedures, under a child support Order, the Participant is responsible for taxes owed on the QDRO distribution. Normally, we give the Participant the option of either (1) paying the tax amount out of pocket or, (2) increasing the distribution in an amount needed to cover the taxes. For example, if the QDRO award the AP $100, we can either distribute the $100 to the AP and have the participant pay $10 (10%) out of pocket, or we increase the distribution to $110 so that $100 can go to the AP and $10 can cover the taxes. We recently received a child support Order that awards the AP 100% of the participant's account. Clearly, we can't increase the distribution to cover the taxes. Do we just send the Participant a demand for payment to cover the taxes? What happens if the Participant refuses to pay? Link to comment Share on other sites More sharing options...
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