QDRO rollover to same plan?

[rcline46]

I remember when conduit IRAs only could be rolled into another plan, and so an IRA created with a QDRO rollover could not again be rolled into a qualified plan. At least I think I remember that.

Now we have inherited IRA accounts and all kinds of new stuff. So my primary question is if there is a list of IRAs and where can the be rolled over (into) what?

That would answer the question if a QDRO IRA can be rolled into another qualified plan.

If that is so, then just maybe if both spouses work for the same company, can the spousal alternate payee roll the QDRO distribution directly into their account in the same plan?

Thanks to those who find the answer.

[Kevin C]

The answer for a given plan will be in the plan document. EGTRRA expanded what can be rolled into a qualified plan, but plans are not required to allow amounts to be rolled in. As long as an IRA is in the person's name (not an inherited IRA), pre-tax IRA amounts can be rolled into a plan as long as the plan allows it.

As for rolling a QDRO distribution back into the same plan when the alternate payee is also a participant, it should be allowed if the plan allows rollovers from a qualified plan. It may not be a wise move for the alternate payee to do so unless the alternate payee is over age 59.5 and the plan allows rollovers to be distributed in-service.

[masteff]

So my primary question is if there is a list of IRAs and where can the be rolled over (into) what?

http://www.irs.gov/pub/irs-tege/rollover_chart.pdf

[ESOP Guy]

So is your question basically this:

A = husband

B = wife

Both A and B work for Z Corp

B is the Alt payee of A.

Can you combine the amount from the QDRO with B's regular account?

I am thinking that is the question.

Am I correct?

[rcline46]

ESOP Guy - I would not use the word 'combine'. It becomes a rollover account, and interesting enough - unrelated rollover for top heavy purposes, since it counts as an in-service from the distributing account.

The document allows rollovers from IRAs and Qual Plans.

There is also the option to create a segregated Alt Payee account (no distribution, no rollover). A little messy when the system runs on SSNs, but no 10% excise tax when it is taken out.

[Kevin C]

I read 1.416-1 T-32 as saying a rollover to a plan maintained by the same employer is a related rollover. That description also fits rolling back into the same plan.

If the alternate payee is under age 59.5, the segregated account is the best choice. That's why I mentioned that a rollover of the QDRO benefit may not be a wise move. Differences in distribution timing can be another reason to leave it in a segregated account until the alternate payee needs the funds.

[ESOP Guy]

I agree with Kevin C. I am thinking having 2 accounts makes the most sense. I bit of a pain but I think in the long run the best answer.