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QDRO and employee contribution after vlauation date


Guest chad.sfds

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Guest chad.sfds

I am 2 days away from a final hearing. The company my 401k is through has a qdro website that is straight forward. My settlement agreement states a valuation date of 10/1/2010 with an amount specified, plus or minus gains or losses. In addition, the settlement agreement states that all contributions after the valuation date are 100% mine.

When I filled out the form, it didnt state anywhere explicitly that they are excluding my contribution and the company match, post 10/1/2010. Is this standard procedure for a QDRO when a valuation date and amount are specified?

The actual form that my atty is turning in states this: The Alternate Payee's award is entitled to earnings (dividends, interest, gains and

losses) from the Valuation Date to the date that the award is segregated from the Participant's account. From and after the date of segregation, the Alternate Payee's award shall be held in an account under the Plan and shall be entitled to all earnings attributable to the investments therein.

Am I correct that they will seperate my contributions (and the company match) post 10/1/210 to segregation date and not distribute 50% of those to the alternate payee?

thanks for any help!

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I don't think anyone without intimate knowledge of your plan's "qdro website" could really answer the question. I mean, the text is perfectly clear, but we just don't know how "the form" gets processed. My guess would be that if you specify an amount, and interest is to be added to it, then future contributions will in fact be excluded.

Ed Snyder

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The safest thing is to ask your plan administrator.
Maybe. No matter what its good intentions, the "qdro website" (or any other administrative procedure) cannot change the ultimate disposition of the QDRO-approved amount. IOW, don't let any admin process change what is supposed to happen. Nevertheless, it's your responsibility to communicate exactly.

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.

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I am 2 days away from a final hearing. The company my 401k is through has a qdro website that is straight forward. My settlement agreement states a valuation date of 10/1/2010 with an amount specified, plus or minus gains or losses. In addition, the settlement agreement states that all contributions after the valuation date are 100% mine.

When I filled out the form, it didnt state anywhere explicitly that they are excluding my contribution and the company match, post 10/1/2010. Is this standard procedure for a QDRO when a valuation date and amount are specified?

The actual form that my atty is turning in states this: The Alternate Payee's award is entitled to earnings (dividends, interest, gains and

losses) from the Valuation Date to the date that the award is segregated from the Participant's account. From and after the date of segregation, the Alternate Payee's award shall be held in an account under the Plan and shall be entitled to all earnings attributable to the investments therein.

Am I correct that they will seperate my contributions (and the company match) post 10/1/210 to segregation date and not distribute 50% of those to the alternate payee?

thanks for any help!

Yes. As long as there is a cut off date (valuation date), the value will be calculated based on that date. The additional contributions and value after that date will be yours. As long as there are no separate contributions before the valuation date you should be ok.

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