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Looking for Ruling/Case Etc.


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...understand that a QDRO is for a qualified plan- not an IRA…but I am looking for a specific case/ruling where it was specifically addressed ,that a QDRO that was issued for a qualified plan (QP)could not be used for the IRA to which the assets were rolled ( from the QP).

Thanks

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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A: who is asking the question? the custodian or one of the parties? I always thought it was obvious that under IRC 408(d)(6) IRAs could only be transfered under the divorce or separation agreement without regard to the QDRO provisons of 414p. IRA custodians will not accept DROs because they are not plan administrators with discretion to act. They merely follow a divorce decree or property settlement agreement to transfer some IRA assets to the spouse.

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Hi MJB

The custodian is asking…I agree on the obvious. Explanations that have been provided to the IRA owner

include:

----This is a QDRO, which applies to qualified plans, such as profit sharing, 401(k), money purchase pension and target benefit plans. For IRAs, the documentation requirement is a divorce decree or legal separation agreement

----As stated in the document ( the QDRO) it applies to a plan under Section 401(a) of the Code. Section 401(a) describes qualified plans. This is an IRA as described under Section 408(a) of the Code.

----The document explains that the requirements under 414(p) of the Code applies. For this account, Section 414(p) cannot apply. Instead, Section 408(d)(6) applies.

I was still hoping to get a copy of the case.

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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There was someone...

I will check my files and references sources...was hoping to save some time if someone else had it readily available.

I will post if I find it.

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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I couldn't possibly agree more with QDROphile.

In addition, it would say something about the lack of ethics of the attorney that allowed his client to bring such an action. It would seem that would violate some ethical canon to bring what would probably the least meritorious case ever filed.

Kirk Maldonado

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Ain't that the truth!

The most recent I have seen…

Client hired attorney to dispute custodian’s explanation that taxes withheld from a Roth conversion is treated as a regular distribution (not as a conversion) and therefore subject to the 10% additional tax, unless an exception applies.

From the attorney's letter, it is evident he does not even know what a Roth conversion is....custodian must respond by X date or be prepared to discuss the matter in court....makes you wanna holler and throw up your hands!!

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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