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Posted

The QDRO says nothing about our distribution fee. It says to give the alternate Payee $5,000 +G/L form August 12, 2016. Do you think we can take half of our distribution fee out of her $5,000?

Posted

Just my opinion, but that question sounds like part of your service agreement.

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.

Posted

If the QDRO is silent on fees, follow your service agreement. In my opinion, it would be improper to charge the the alternate payee unless authorized in the QDRO.

As a side note, my service agreement takes this a step further. Even if the QDRO stipulates that the fee should be split, I can collect from the plan sponsor in the event of non-payment from the third party.

 

 

Posted

Following Lou S, what is the fee? Is it a fee applicable to every distribution? Or is it specifically a fee related to QDROs, as sort of suggested by your report on what the SPD says. If the fee "may" be charged ... , then who decides whether or not it is charged or charged to the participant's account? Looks like the plan administrator will have to interpret the ______ language of the SPD and answer all the other related questions.

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