david rigby

1. Is "games" supposed to be "gains"? 2. There is a recent discussion thread that suggests non-qualified plans are unlikely to recognize a QDRO. https://benefitslink.com/boards/topic/71731-how-likely-is-it-that-an-unfunded-deferred-compensation-plan-does-not-recognize-domestic-relations-orders/ 3. Any qualified plan will not care what's in the divorce decree, rather what is in the DRO. 4. All of your questions should be addressed to your attorney. 5. Probably "separate", but that is just my opinion.

The above word "allows" might imply some discretion. The document probably does not include discretion but check carefully.

Ok, I'll bite. Why would anyone want voluntary after-tax contributions to a DB plan? What is the proposed method of tracking these amounts? Crediting any earnings?

In addition, Timing is important: Very likely, any change that applies would take effect at the beginning of the next plan year. You should ask your HR rep (assuming that exists) what changes might apply and when. And take into account that some plans require participants who are no longer employed to begin their payment (in whatever form they choose) at Normal Retirement Date (often, age 65) so that your proposed delay may not be permissible under the Plan provisions.

Have you read the Summary Plan Description (SPD)?

Yeah, that is my experience also. However, I recently encountered a situation (termination of employment in the mid 90's) that pointed in that direction; the plan sponsor kept digging and found a letter that proved the opposite. So, the lesson is: don't jump to conclusions too easily and keep your documentation.

Your title says "non-qualified", so we will assume this is a payment from the company rather than a payment from a (qualified) plan. Without knowing any details beyond your statement, it seems likely the 20% is incorrect. That percent applies to a payment (usually a lump sum) that is rollable. It is very unlikely that any payment from a non-qualified plan is rollable to an IRA. BTW, you used the word "taxable", but I think you mean "tax withholding rate"; your actual tax rate will be based on all your taxable income, deductions, etc. Are you receiving a W-2 form each year for IRS/tax reporting? If so, there might be a default withholding rate but there is no mandatory rate; you can submit a W-4 to elect your withholding status (not a W-4P, which applies to a payment from a qualified plan). I'm not a tax expert so I hope other readers will chime in here to confirm or correct my statement(s).

Also relevant is whether there is, or might be, some regular work hours on that day (ie, without regard to it being a Sunday).

We've seen it. The PBGC does not do "matured" or "expired" plan. They insist on the forms 500 and 501 being filed, even if everything is zero. I think the PBGC is wrong, but it's not worth fighting.

Sometimes, research is not difficult. https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

No big deal. In my observation, it happens more frequently than you might think. In fact, the PBGC does not seem to accept the reality of a "matured plan", and they insist on a formal termination. Final forms (both PBGC and 5500) must be filed but it's OK if they all contain zeros. This also gives you the opportunity to file a PBGC premium form (all zeros) with "final filing" checkbox. Make sure you have the proper documentation and bring document(s) up to date. Also, in similar cases, I've observed that the sponsor elected NOT to file for IRS determination review and just filed final 5500.

Is the cash balance plan subject to PBGC?

As noted, a Qualified Domestic Relations Order is the vehicle for the plan to make a payment to an ex-spouse. The creation of a QDRO grows out of the divorce proceeding; it does not happen on its own. If you don't already have one, talk to your attorney. Also, note that the "QDRO rules" may not apply (or be different) if the plan is sponsored by a governmental organization (e.g., state employees, police, fire, public school teachers, etc.)

Roughly, how much?

Peter, there is at least one other category. There are a substantial number of actuaries who place themselves in the "pension actuary" category (usually including an Enrolled Actuary credential) that also work on health-related issues. Notably, "Other Post-Employment Benefits" (OPEB); ie, retiree benefits that most often include medical, dental, life. The percent of time spent on these issues varies widely: anywhere from 5% to 95%+.

@Peter Gulia is spot on. Also, if the plan-required date is based on age 70-1/2, but the participant's RMD is 72 or 73 (according to the IRC), the payment (assuming a lump sum) is 100% rollable.

.... assuming the Plan itself is/will be amended to recognize the new 72/73 ages. There is no requirement to do so.

Just my opinion, you should NOT be posting your personal information on this public site.

Does this turn after-tax dollars into pre-tax dollars?

Is it possible the applicable plan was NOT amended to use the 72 and/or 73 ages for RBD?

Exactly right. And... those six words are breathtakingly poor documentation for any divorce decree and/or property settlement.

There are some US cities that have a fixed percent withholding, which is done at the payroll level, probably with no corresponding "tax return". Just my guess, those local statutes refer to wages, or salary, or overtime, or earned income, or W-2 compensation, or something similar. That is, it's a tax on wages. I would be surprised if any referred to payment from a qualified plan. BTW, the original question appears to assume taxation might apply to a periodic distribution from a DB plan. If that is subject to taxation, why not some taxation for distribution from a DC plan? And how would such a statute deal with amounts that are rolled over? Or made due to death or disability?

Sign and retain? If @Effen is skeptical (rightly so), this appears even more (agreeing with his word) unethical. No, I think there are several stronger words that apply.

Maybe it's just me, but it seems Jane might want (in addition to the "due on sale" aspect discussed above) some other reward, soon, perhaps even an annual cash bonus. Perhaps Jane could engage the services of a good compensation consultant (one who is selling only his/her expertise, rather than a product), or an ERISA attorney.

Are there advantages to having the plan termination effective one day before the transaction is closed? It's worth considering.