Dougsbpc Posted September 21, 2009 Posted September 21, 2009 Suppose you have a small DB that is less than 80% funded. Can the 100% owner's spouse be paid a lump sum as ordered by a QDRO?
Effen Posted September 21, 2009 Posted September 21, 2009 Not if it is > $5,000. Benefit restrictions apply to spouses & alternate payees as well. 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.
SoCalActuary Posted September 21, 2009 Posted September 21, 2009 Suppose you have a small DB that is less than 80% funded. Can the 100% owner's spouse be paid a lump sum as ordered by a QDRO? With or without other employees? If you have no 401(a)(4) issues, then you might be OK. If you have employees, then how do you intend to comply with the 110% CL ratio issue? You have not presented a fact pattern that would comply.
Andy the Actuary Posted September 21, 2009 Posted September 21, 2009 Yes, we have a wonderful divorce strategy for the participant -- do not request the EA to certify the AFTAP and delay, so that no lump sums can be distributed (until the participant is in the mood). When litigation ensues, please remember that you got this idea off a Wheaties box. 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.
Recommended Posts
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 accountSign in
Already have an account? Sign in here.
Sign In Now