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QEBA and Division of Property Orders (DPOs)


Guest TAXMANAGER

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Guest TAXMANAGER

Can anyone answer this question:

It is my understanding that when an alternate payee (ex-spouse) is receiving a portion of the member's benefit, the 415(B) limit is based on the full amount. Is this correct or should the 415 (B) limit be based solely on the portion that the member is receiving? The alternate payees portion of the benefit is not included in the members gross/taxable benefit on the 1099 unlike child support orders in which the taxability is the members responsibility.

If the full benefit is used, can alternate payees receive QEBA payments? If so, when does one apply the QEBA to the alternate payee and what method should be used to determine the portion that is applied? Or do I need to apply the QEBA solely to the members portion of the benefit and leave the alternate payees portion alone?

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