Daggered Posted June 12, 2019 Share Posted June 12, 2019 What if QDRO done & approved, but participant never collects their retirement funds? Does that affect the alternate payees ability to collect? Link to comment Share on other sites More sharing options...
david rigby Posted June 12, 2019 Share Posted June 12, 2019 It depends on the precise wording/structure of the QDRO itself. rr_sphr 1 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. Link to comment Share on other sites More sharing options...
Daggered Posted June 12, 2019 Author Share Posted June 12, 2019 & what if after all is done, QDRO approved & signed, but participant never collects, & dies, but never changed beneficiaries? Meaning myself & our child still listed as beneficiaries. Link to comment Share on other sites More sharing options...
david rigby Posted June 13, 2019 Share Posted June 13, 2019 Still too vague. There is much you have omitted. You don't have to put personal information here. Most commenters are going to respond with something like, "You need your own attorney, and make sure that person is familiar with QDRO's." 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. Link to comment Share on other sites More sharing options...
fmsinc Posted June 13, 2019 Share Posted June 13, 2019 Is this a QDRO for an ERISA qualified plan? Or are you using "QDRO" as a generic term? There are about 980,000 pension and retirement plans in the US. Most are ERISA qualified, but there are thousands of Federal, State, County and Municipal plans, and International agency plans as well, that are not controlled by ERISA. So it would be helpful if you would identify the Plan you are dealing with - full name please (Lockheed has 25+ plans and a few are not qualified under ERISA but the company chooses to enforce them as if they were and even used ERISA lingo.) Whether it's a defined benefit plan or a defined contribution Plan, either (i) the estate of the intended Alternate Payee will need to make a claim for pension or retirement benefits not taken by the decedent; or (ii) you will have to file an interpleader action, deposit the unclaimed retirement benefits into the registry of the court, and let the parties fight it out. Link to comment Share on other sites More sharing options...
Daggered Posted June 15, 2019 Author Share Posted June 15, 2019 I have no idea. I know absolutely nothing about finances, investments, or retirement. Participant was a non union truck driver. Company pension changed from defined benefits plan to 401k plan with T Rowe Price. My divorce attorney does not handle QDRO's & had me hire a company that specializes in just QDRO's. My attorney never answered my questions, by the time i realized he wasn't the greatest of attorneys, I was too far through the divorce process, & couldn't afford another retainer to hire a new attorney. All I know as of right now was that the qdro has been approved by the pension dept, I assume I will need a financial planner to assist in rolling over my portion into my own IRA Link to comment Share on other sites More sharing options...
fmsinc Posted June 15, 2019 Share Posted June 15, 2019 I don't understand who you are. You say in the first sentence that the "Participant was a non-union truck driver". Are you the Participant? If the QDRO was approved by the Plan Administrator and is still sitting in the 401(k), you don't need a financial planner to roll over the money. You would just contact the Plan Administrator and ask how they handle that. Generally they will have a form for you to fill out telling them where they are to send the money. Normally that will be an IRA account, but if you have an existing 401(k) you can roll the money into that existing IRA. The rollover transfer will be tax free. You will also have the option to request a taxable distribution, that is, money paid directly to you instead of a rollover. You will pay taxes on the rollover, but no 10% early withdrawal penalty. The Plan will withhold 20% for Federal tax purposes and that amount will be on the tax returns filed for the year in which you received the distribution. Another issue is whether you get only the amount listed in the QDRO, or do you receive gains, losses and investment experience on your share from the date of the Agreement (if any) or the date of the Judgment of Divorce through the date the funds are transferred to you by rollover or distribution. If this is covered in the QDRO, that's good news. If not, there is plenty of law that says that an adjustment for gains, losses and investment income is implicit. See attached. The next question will be whether the Plan Administrator can track those gains, losses and investment experience. Most 401(k) Plan can do so, but some limit how far back they can go. Good luck. David Goldberg Gains, Losses, Ownership Interest and Constructive Trust.pdf Link to comment Share on other sites More sharing options...
Daggered Posted June 15, 2019 Author Share Posted June 15, 2019 Thank you very much. I have no clue about anything, my attorney was not the most helpful. Do I try to find a financial advisor, or an attorney to help me understand what I should do? I am the alternate payee, ex husband is participant. The QDRO is still in process, the letter i received says it's been approved by pension dept, now gets signed by judge and will be a few months until finalized. Which I don't understand, because judge initially ordered the qdro in divorce settlement, so why does it need judges signature? I do not have my own IRA or 401k, I assume I need to invest in an IRA being im nowhere near retirement age. Besides it would be smart to do anyway Link to comment Share on other sites More sharing options...
fmsinc Posted June 15, 2019 Share Posted June 15, 2019 If you tell me in what city and state you live I will see if I can find someone to help you. David Link to comment Share on other sites More sharing options...
Daggered Posted June 15, 2019 Author Share Posted June 15, 2019 I am in Centereach, NY. (Suffolk County, Long Island) Link to comment Share on other sites More sharing options...
fmsinc Posted June 15, 2019 Share Posted June 15, 2019 I will get back to you in a day or so. Link to comment Share on other sites More sharing options...
fmsinc Posted June 16, 2019 Share Posted June 16, 2019 This firm keeps popping up and is highly rated online. I don't know them and cannot comment. But give them a call. If they cannot help they should be able to refer you to someone who can. https://www.petroskelaw.com/long-island-qdros-lawyer/ Link to comment Share on other sites More sharing options...
Daggered Posted June 17, 2019 Author Share Posted June 17, 2019 Thank you very much Link to comment Share on other sites More sharing options...
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