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Posted

What guidance is there regarding charging a nominal fee for the processing of a QDRO? Can we do this? Is there a max we can charge? Any information will be appreciated.

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Posted

No. A QDRO is a feature covered by ERISA, and an employee has a right to process a QDRO. I believe the only fees that can be charged are in relation to optional benefits such as loans and hardships.

Posted

Also, you may want to review this letter.

ERISA Opinion Letter No. 94-32A Application of QDRO exception to anti-assignment and alienation rules.

I believe that the plan (so all participants take a hit) can be charged QDRO admin fees as long as they are reasonable.

  • 3 weeks later...
Guest PeterGulia
Posted

Consider the possibility that the DoL's view descried in an ERISA Advisory Opinion is not the law. Consider asking your lawyer whether s/he would render an opinion that a reasonable charge for QDRO handling can be included in the plan's allocation provision.

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