QDRO

[Guest cody]

I was provided with a "draft" copy of a DRO which indicates that the alternate payee is to receive a 1/2 of the account value as of a specific date but then they are also to receive 30% of each years contribution to the plan and applicable earnings.

Has anyone even seen a stipulation put on future contributions. What's to stop the individual from deferring or if the individual is quits or is laid off and contributions cease?

Can a garnish be put on future deposits that may or may not be made?

Any feedback would be appreciated.

Thanks

[QDROphile]

What is your perspective? In other words, why do you care? If you are the plan administrator, you need only determine if the order is qualified and that you can understand the terms to administer it properly.

An order can be qualified if it provides for an alternate payee to have an interest in future contributions. It is unusual, and you have to be careful that it makes sense and covers everything properly. For example, when is the alternate payee supposed to get a distribution and how does that relate to contributions that may be made after the distribution? Does the plan allow multiple distributions or only a single lump sum? If multiple distributions are possible, are you able to determine if the distributions are eligible rollover distributions when you may not know if the distribution perion will be more than 10 years?

[Guest cody]

Add on to original question

I failed to include that the 30% portion of future contributions is to be paid/transferred to alternate payee's account each year for the next 10 yrs.

Thanks for the response QDROphile

[QDROphile]

30% of zero is zero.