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Forfeitures and QDRO


Guest PRafferty

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Guest PRafferty
Posted

We recently received a QDRO for a participant in a profit sharing plan. Over the years, the participant received forfeitures that we re-allocated within the years of marriage. Would the alternate payee be entitled to a part of the forfeiture money as well? I have included them in a seperate account for the alternate payee but the trustee recently questioned whether they should receive it. Any help is very much appreciated!

Posted

Most likely.

The QDRO generally specifies that the alternate payee is entitled to a specified dollar amount or a percentage of the total account balance as of a given date. That account balance includes those reallocated forfeitures.

Guest PRafferty
Posted

Thank you very much. That's what I thought but I wanted to make sure I was right.

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