QDRO's

[Guest bubs]

Does anyone know what steps are needed when a QDRO is ignored? Situation - QDRO revcd April 2000 - ex-wife to get 100% of 401(k) balance - participant already terminated - a distributable event - ex-wife gets distro forms never returns them - Dec. 2000 participant rolls balance to IRA - March 2001 $ still in IRA - June 2001 ex-wife doing 2000 tax return - sees 1099R for rollover to ex-husband - How can situation be rectified?

Can a QDRO be issued now on the IRA - if yes - who files or probably more relevant who pays?

[david rigby]

So this is how you spell trouble!!

Just a guess but I would say the plan is in deep doodoo, and may have to pay the spouse anyway.

The Plan needs legal advice.

[Guest b2kates]

I agree with pax, plan may be in deep.

Can plan get funds back from participant?

Plan may have violated fiduciary duty and my be liable to pay amount twice, then try to obtain back from participant.

[QDROphile]

Subject to state domestic relations law, the former spouse can get the money now in the IRA. Division of IRAs is not covered by the QDRO rules.

As far as the plan goes, the two prior posts are correct. The plan owes the alternate payee the money. If I were the plan administrator, I would consider supporting the alternate payee's efforts to get the money from the IRA and settle. There may be better ways to proceed, especially if the former participant is cooperative or you can find a kick-ass domestic relations judge.