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Joe's balance is $30,000 (fully vested). His outstanding loan is $14,0


Guest RJM

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Joe is 100% vested. His balance is $30,000. His outstanding loan is $14,000. How much can Joe's wife's attorney get for her in the form of a QDRO ??

Any cites would be appreciated.

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The answer under federal law is every single dollar that is ever in the plan until the earlier of the death of Joe or the death of Joe's spouse, including amounts that accrue after the divorce. But you won't get that result under state law in a contested matter.

To respond at a simplistic level under federal law, $30,000, but you had better know what you are getting into when you go after a loan balance.

All responses assume that the plan is a private employer qualified plan.

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Thanks to TAG (Technical Answer Group), we finally got the cite we were looking for:

Section 414(p)(1)(A) provides, in general, that a QDRO is a domestic relations order that creates or recognizes the existence of an alternate payee's right, or assigns to an alternate payee the right, to receive all or a portion of the benefits payable with respect to a participant under a plan, and that meets the requirements of paragraphs (2) and (3) of §414(p).

Thanks for the input!!

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