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QDRO distributions & top heavy determination


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Guest jim williams
Posted

Would a distribution made from a key employee to his ex-spouse pertaining to a QDRO be considered an in-service distribution on behalf of the key employee required to be added back for 5-years when determining the profit sharing plan's top heavy status?

Posted
Would a distribution made from a key employee to his ex-spouse pertaining to a QDRO be considered an in-service distribution on behalf of the key employee required to be added back for 5-years when determining the profit sharing plan's top heavy status?

Yes.

Posted

The principle s/b straightforward: you cannot get out of T-H requirements just because someone had a QDRO.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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