david rigby

Is there a discretionary nature to the ER contribution? Will the 401(a) plan exist prior to FYE?

Data as of November 30, 2020 (Monday) Ninth month-end after beginning of Coved-19 pandemic/isolation Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial CorporateAaa NA 2.20 2.20Aa 2.51 2.20 2.36A 2.72 2.60 2.66Baa 3.01 3.25 3.13Avg 2.75 2.56 2.66 Moody's Daily Treasury Yield AveragesShort-Term (3-5 yrs) 0.27Medium-Term (5-10 yrs) 0.56Long-Term (10+ yrs) 1.37 Observation: (1) Comparing the Avg rates to 6 months prior, current rates are about 40 points lower. (2) Comparing the Avg rates to 12 months prior, current rates are about 70 points lower.

Generally, I agree with above comments. However, it's not prudent to simply ignore it. Rather, write down what you are doing, including nothing, and cite your QDRO procedures. Remember, being informed of a divorce or potential divorce might be a "red flag" (i.e., you might be expecting to receive a DRO) but is not the trigger for "put hold on account". It is not the same thing as receiving a DRO. See IRC 414(p)(7).

"Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it." Will Rogers

Please elaborate.

IRS Notice 2020-82, issued 11/16/2020. https://www.irs.gov/pub/irs-drop/n-20-82.pdf. For IRS purposes, the 1/1/2021 extended due date is now (administratively) January 4, 2021. The PBGC may (but is not required to) follow.

BTW, note that the $230K limit will be unchanged for 2021 (ie, no help from indexing).

Probably not an "R", but yes, a 1099.

Not a good omen.

Advance Notice: After posting the rates for the month-end December 2020, I will no longer be adding to this list. If someone else is willing to take on this task, I'll be glad to help get you started.

Do you need to correct any typos in the dates shown?

In addition to Effen's comments, it may be prudent to specify service for all purposes. Not just accrual service, but also specify the intent w/r/t participation service and vesting service.

At the time the QDRO was prepared, the language you describe is awarding her a portion of any increase, which (conceptually) is no different than awarding alimony as a percent of future earnings. Your company plans to calculate her share based on the terms of the QDRO itself, not based on how you (later) wish it had been written. How could they do differently? If you disagree with the interpretation of the QDRO, say so, and present your facts. Get the advice of your own attorney (ie, one who is familiar with QDROs). Just a hunch: it may not matter that you later describe it as "unfair".

Data as of October 31, 2020 (Friday) Eighth month-end after beginning of Coved-19 pandemic/isolation Moody's Daily Long-term Corporate Bond Yield Averages Utilities Industrial Corporate Aaa NA 2.39 2.39 Aa 2.76 2.43 2.60 A 2.99 2.86 2.93 Baa 3.35 3.62 3.49 Avg 3.03 2.83 2.93 Moody's Daily Treasury Yield Averages Short-Term (3-5 yrs) 0.29 Medium-Term (5-10 yrs) 0.59 Long-Term (10+ yrs) 1.43 Observation: (1) Comparing the Avg rates to 6 months prior, current rates are very close, only 5-10 points lower. (2) Comparing the Avg rates to 12 months prior, current rates are about 30-45 points lower.

Is this the same question you asked earlier? If so, it is very inefficient to ask it twice. However, if you need to add information to the original question, please use the Edit feature.

Yep. Another reason might be who pays any admin costs. Good documentation will include this.

Usually, the person who expects the payment (ie, the Alternate Payee) is the one who pushes for completion of the paperwork; it's in your best interest to do it, or monitor its completion. However, your attorney should be (or have been) the driving force. What say he/she?

Maybe it's just me, I would not do any of the above until I read the plan document to determine what it permits and/or requires.

... and the plan sponsor should always want the ability to point at something, "See, this is how much you put in, and that is how much we put in." A fundamental rule in consulting (but often lacking in recordkeeping and/or TPAs) is: No employee benefit is worth much if it's not communicated properly.

While the above advice is reasonable, it may be prudent to (proactively) let the participant know what you are doing and why.

Not to beat a dead horse: not all divorce lawyers are familiar with QDROs. Make sure yours is.

Have you contacted the agency? HR Department?

Hojo's comment is the most obvious answer, but there might be others. The best action is to direct the "WHY" question to the company's reps. If it's not too personal, please let us know the answer.

Rather than the sponsor being on the hook for the "correct taxes", it might be on the hook for the 20% default withholding.

And there are other things to ask about (whether or not it seems likely): loans, QDROs, hardship withdrawals ...