QDRO for a Nonqualified Deferred Compensation Plan

[Guest koolkid]

Are Non-qualified Deferred Compensation plans subject to QDROs?

[E as in ERISA]

The 414(p) QDRO rules don't apply to them. But I wouldn't be surprised if a judge issued a "nonqualified" domestic relations order involving one.

[Guest koolkid]

Thanks for the tip!

[Everett Moreland]

Read Revenue Ruling 2002-22

[david rigby]

http://www.taxlinks.com/rulings/2002/revrul2002-22.htm

[mbozek]

Rev rule 2002-22 permits nonqual benefits to be transferred to a non spouse participant pursuant to a divorce or separation agreement as a non taxable transfer of property under IRC 1041. However IRC 1041 transfers are not QDROS and there is no employer approval in a 1041 transfer. 1041 transfers are subject to the terms of the deferred comp agreement and applicable restrictions on the transfer of stock options.