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And if they want to reverse it because they found out it is a taxable conversion, they are out of luck because you are no longer allowed to unwind them. They are now irrevocable.

The good ol' IRS Rollover Chart explains it clearly: Roll from: Qualified Plan (pre-tax) Roll to: Roth IRA Allowed: Yes (with a footnote) Footnote says: Must include in income.

PSP can have in-service. A rollover to a Roth IRA is taxable but there is no 20% tax withholding because the distribution is rolled over. The taxable nature of the distribution should be evidenced by the 1099R that is issued for the distribution.

Don’t you have to test this match formula for effective availability when you have a match that increases as the deferral amount goes up?

When a loan is considered offset and the consequences of how the loan offset is treated can get complicated. I suggest reading through the examples in § 1.402(c)–2(g)(5) I believe that if the Loan Policy says the loan will be due and payable upon termination of service, the rules in § 1.402(c)–2(g)(4) will govern and the loan will be offset upon termination of employment. One complication to note is if the loan offset is within 12 months of the date of termination of employment, then it is a qualified loan offset which give the participant the ability to rollover the loan offset by the time the participant files their tax return for the year. If the loan offset is not a qualified loan offset, then the rollover must be done within 60 days. Warning - working straight through all 7 examples in the reg is hazardous to mental health.

If it was done in 2025 you'll have a 1099-R at year end. If you are reconciling 2024 and they are just telling you about this now, they need late 2024, 1099-Rs and possible amended tax returns if they already filed. Gotta love clients that rely of Google for their plan advice instead of making a phone call to the consultant who probably knows the correct answer, even if it's not the one they want to hear.

I'd be worried that a true-down is actually a cutback if the calculation and allocation are paired together at the pay period (rather than annual) level.

Is that an ASC document? I think they have separate QNEC options available, depending on how you filled out that 6D. Something where the BPD allows much more limited QNEC options unless you choose that "special contributions" option in 6D. Coordinate 6-D1's italicized notes with the BPD.

The list of characteristic codes that I look at says: "3H Plan sponsor(s) is (are) a member(s) of a controlled group under Code section 414(b) or (c) or of an affiliated service group under section 414(m)."

Assuming that your retirement plan is a defined contribution plan, such as a 401(k) plan: After the plan determines that a domestic relations order submitted to it for purposes of dividing the benefit is a qualified domestic relations order (QDRO), the plan will establish a sub account for the alternate payee (your ex) and determine the initial balance of that sub account in accordance with the description in the QDRO, which should mirror the description in your divorce decree. How the plan will accomplish this depends on what service provider handles the accounts and the investment management. The large commercial operations (Vanguard, Fidelity, Schwab, various insurance companies) typically use algorithms to bring forward the initial balance of the sub account as of the date of the divorce decree to account for the investment results up to the point that the sub account is actually established. Once the sub account is established by subtraction from your full account balance, the sub account takes care of itself with respect to earnings and losses, and your remaining account is unaffected going forward. The “until … the date of distribution” language becomes irrelevant to you. One problem with delay is that it makes bringing forward investment earnings more difficult. Worst, if in the interim the plan changes its investment provider, the usual methodology for bringing forward investment earnings will not work in many cases because the new provider will not have adequate records and information for the account in the time before the change in providers occurred and will not be able to do the calculations from the date of the divorce decree through the date that the new recordkeeping began. If that happens, you and your former wife may have to figure out your own way to estimate the your balance as of the date of the divorce and the investment earnings on the amount awarded to the alternate payee going forward until date sub account is actually established. I use the term sub account to be technically correct. The account for the alternate payee will look like a regular account for the alternate payee, and will function as such in almost all cases. My use of the term investment earnings includes both earnings and losses. If your ex was clearly assigned the responsibility for preparing and submitting a domestic relations order to the plan, at some point your ex’s ability to enforce the divorce decree terms could be compromised to some degree. That means that any difficulties in trying to comply with the terms of the decree through a domestic relations order could fall more heavily on your ex. But everyone will be burdened by the mess.

My QDRO Alternate Payee clients will move to a new home, or remarry and take a new spouse's surname, and they will notify the Social Security Administrations, Motor Vehicle Administration, their Post Office, credit card companies, banks, everyone they know EXCEPT the Plan Administrator of the defined benefit Plan from which they are hoping to someday receive a share of their former spouse's retirement and survivor annuity benefit. I have for years included in all of my QDROs the current addresses of both parties, their personal phone numbers, and their personal email addresses. My motive is to give the Plan Administrators a second and third shot at finding the parties at significant events such as retirement and death. You administrator folks should insist upon it. David

I really like PBI locator services. The thing I like about them is they will give you a letter regarding what they did to find this person. So if someone like the DOL asks about due diligence you produce this letter.

Reality has arrived - we are seeing plan audits reassigned due to personnel changes at Treasury, audit appointments pushed out, and even unofficially an audit scaled back. I'm sure there will be more changes coming.