Can a QDRO be Rolledover into a 401(k) where the participant is Terminated?

[Guest jeffgh24]

I have a 2-part question, where I think the answer to one of my question may dictate the answer to the other.

Participant A is a QDRO recipient from a former spouse’s account from an unrelated plan.

Can Participant A roll over the QDRO proceeds directly into his/her 401(k) plan? Or does he/she have to go through a conduit IRA? The plan is amended for EGTTRA and allows other types of rollovers, but QDRO is not specified.

The twist. Participant A is a terminated employee, but still has an account balance in the plan. Can he/she do a rollover into a plan, where he/she was one time eligible, but is currently terminated?

Thanks for anyone’s thoughts…

[ccassetty]

Even before the new expanded rollover rules, a spouse AP had the same rollover rights as a participant. So yes, if the distribution would be eligible for rollover if it was being paid to the participant, it can be rolled over by the spouse AP.

Read the receiving plan's provisions on who is eligible to make rollovers, that should answer your second question.

[Alf]

Part A may not be able to get a distribution. It is not automatic or required, but assuming Part A can get a dist, it can be rolled over if the receiving plan allows it.

It is unlikely that Part A's plan will allow a rollover in based on Part A's status as a former employee, but check the plan just in case.