"1.0 rule" -- effect of QDRO

[Guest John Nelson]

Say a doctor (of course) terminated her DBPP back in 1987 because it was fully funded. This year, doctor was divorced and the spouse received 60 percent of plan assets (now in rollover IRA). Question: Doctor clearly no longer has assets equal to benefit projected back in 1987 -- can she start a new DBPP plan this year and start trying to make up what was lost to spouse?

[mwyatt]

It is our position that the QDRO distribution is treated as having been made to the doctor for IRC 415 purposes with respect to both the single and combined limitations. So no, I think that the QDRO cannot be "disappeared" for 415 purposes.

[Guest David Lipkin]

This is also consistent with the advice that we have gotten from counsel on this issue.