Jump to content

QDRO Terms


Guest macklin

Recommended Posts

Guest macklin

My ex and I were separated 1999 and Divorce Decree effective 1/2003. After almost 4 years of back and forth between myself, my attorney, the court and the plan administrator I finally have a qualified order. We tried to follow the model given to us but it seemed there was always something wrong with the order. I was lead to believe that my order was written to give my ex 50%, + losses and earnings, of the value of my 401K at the date of our seperation. Iwas told that placing a valuation date of 1999 would split the amount in the 401K as of that date and distribute 50% to my ex. I received the QDRO yesterday in the mail and I went to my benefits website this evening to find that 50% of todays value of my 401K has been disbursed to my ex. Was I misled about the meaning of the "valuation date" or is it possible the plan made a mistake?

Link to comment
Share on other sites

Did you continue to put money into your 401(k) after the date of seperation?

Did the employer make any contributions (matching or profit sharing) after the date of seperation?

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

Link to comment
Share on other sites

Effen's point is that if no one (you or your employer) put more contributions in the account after the "magic date", then 50% of that amount, plus losses and earnings, will equal 50% of today's amount. (Of course, you also have to adjust if there were any payments from the account in the meantime.) Perhaps this scenario is not likely, but if it applies, just go with the flow.

If there were payments into or out of the account, then the disbursement may not be in accordance with the QDRO, as you have described it. But make sure that is what it says.

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.

Link to comment
Share on other sites

Guest macklin
My ex and I were separated 1999 and Divorce Decree effective 1/2003. After almost 4 years of back and forth between myself, my attorney, the court and the plan administrator I finally have a qualified order. We tried to follow the model given to us but it seemed there was always something wrong with the order. I was lead to believe that my order was written to give my ex 50%, + losses and earnings, of the value of my 401K at the date of our seperation. Iwas told that placing a valuation date of 1999 would split the amount in the 401K as of that date and distribute 50% to my ex. I received the QDRO yesterday in the mail and I went to my benefits website this evening to find that 50% of todays value of my 401K has been disbursed to my ex. Was I misled about the meaning of the "valuation date" or is it possible the plan made a mistake?
Link to comment
Share on other sites

Guest macklin

Yes, to both questions. And I double checked the language in the QDRO and it clearly states a valuation date of Jan. 1999.

Link to comment
Share on other sites

Guest Pensions in Paradise

Sounds like the plan made a mistake and distributed too much to your ex. Contact the plan administrator immediately and inform them of the issue. Put it in writing so you have proof that you informed them of the mistake. It will then be their responsibility to get the excess money back from your ex. Good luck.

Link to comment
Share on other sites

Guest macklin

Thank you all for your assistance. I realize now that this may not have been the forum for a layman, like myself, but I appreciate the responses. "Paradise", the letter has been overnighted and certified.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...