QDRO Accrued Benefit

[DTH]

I have a QDRO where the alternate payee is getting 50% of the account balance as of December 1, 2007 (DRO valuation date). The plan provides for a profit sharing contribution to all eligible employees who either worked over 500 hours during the plan year or who are employed on the last day of the plan year. The participant has accrued a right to the 2007 profit sharing contribution, but it will be made to the plan until March of 2008.

Do I split the account as of 12/1/2007 only or does the alternate payee also get 50% of the 2007 profit sharing allocation made in 2008?

Thanks.

[J Simmons]

Kind of a cash basis or accrual question of sorts.

I would apply the QDRO literally, and split out only 50% of the account balance as of December 1, 2007, and then give all the 2007 accrual to the participant (and the remainder of the 12/1/2007 account balance).

[david rigby]

... and look very carefully at the QDRO to determine whether it also includes "accrued amounts".