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An immediate lump sum to the A/P of a QDRO in such instance is only allowable if (1) the QDRO calls for it and (2) the plan allows for it. DB plan documents can allow for QDRO payouts of any amount at any time (but lump sums would be subject to any 436 or top 25 HCE restrictions), regardless of whether the participant is eligible for a distribution. Our pre-approved plans have that as a checkbox option.

Some plans allow a beneficiary to disclaim a death benefit; some plans do not. If a beneficiary makes a legally valid disclaimer that the plan’s administrator accepts, the retirement plan benefit will be distributed (or distributable) as if the disclaimant had died before the participant’s death (or before the creation of the benefit disclaimed). If a beneficiary makes a valid disclaimer that also meets all requirements of Internal Revenue Code § 2518 (see 26 C.F.R. § 25.2518-1, § 25.2518-2), the disclaimed benefit will not be in the disclaimant’s estate for Federal estate tax purposes, and will not be the disclaimant’s income for Federal income tax purposes. Some States have a similar rule for State estate or inheritance tax purposes. To be effective for Federal tax and retirement plan purposes, a disclaimer usually must meet all these requirements: 1. The disclaimer must be made before the beneficiary accepts or uses the disclaimed benefit. 2. The disclaimant must not have received any consideration for the disclaimer. 3. The benefit must pass with no direction by the disclaimant. 4. The disclaimer must be in writing, and must be signed by the disclaimant. 5. The writing must state an irrevocable and unqualified refusal to accept the benefit. 6. The writing must be delivered to the trustee, custodian, insurer, or plan administrator. 7. The writing must be so delivered by nine months after: a. the date of the participant’s death, or b. the date the beneficiary attains age 21, whichever is later. 8. The disclaimer must meet all requirements of applicable or relevant State law. To write a disclaimer (and to get advice about what the plan’s administrator would accept), the beneficiary might consult her estate-planning lawyer.

Why is it the employee's responsibility to open an account? The plan has to have a trustee. This is the trustee's duty. DOL rules on this are quite clear - it has to be deposited as soon as administratively feasible. There is a 7-business day safe harbor for small plans.

Then I would just deposit the gross amount. The ER should not get a windfall b/c there were losses in the market. Note the file. Move on.

Safe harbor amounts aren't late until the 12/31 following the end of the plan year - that's the date they were truly due. (As CBZ noted, that's independent of their deductibility.) Unless we're talking about a payroll-based SH match, those are due by each succeeding quarter-end.

As of 12/31/2020, they are due to be paid a benefit, regardless of the measurement basis. Look at it from the perspective of a pension plan, if they aren't in pay status, no other participant has an amount that belongs to them, just the promise to be paid in the future; yet those participants would all be included. And I have never seen an auditor use anything other than a receivable amount, unless it was not a deductible allocation related to the same taxable period.

Biggest problem QDRO's have, the order's usage of the words "must", "will", and "have to" when it comes to the terms and conditions of the distribution to the AP. The order can't compel a Plan to do anything that the Plan Document doesn't already allow. As the Plan Document must say within itself, it is controlling in case of any conflict.

FWIW - I love these message boards! I try to guess at the answer before clicking on the links in the email - and my memory served me well today. A big thank you to everyone who contributes!

Make sure you are checking the correct section(s) of the plan document or AA.

Defined benefit or defined contribution? For a DB plan, I would say there isn't one.

The way I read the OP they have been filing as a large plan and doing the audit, so filing the same as last year would be filing as a large plan and therefore an audit is required. (Assuming you agree that the 3 receiving a true up "count" in the count)

No, it was C.B. Zeller who did that. My program that is commercially available can do it but you shouldn't have to purchase a program to do this when every administative system will do it for you, too.

yeah that's not practical for my nonactuarial mind 😂 If there was a table I could download once a month from actuaries.com or something with the factors now we're talking about my skill set! I see now that the interest that needs to be used will fluctiate so the APRs will fluctuate. Seems nuts that the DOL wouldn't issue an RMD factor style table for this. What is John Doe the Plumber supposed to do if his money is in Fidelity brokerage accounts?