Tax Exempt 457 (b) plan non-government non-qualified

[Charlie]

During divorce participant was supposed to roll over a portion of retirement into the ex-spouse's designated account.  The participant filled out a QDRO from the third-party administrator for a 457 (b) non-government account.  The participant did not let the ex-spouse or the court know that this was a non-qualified account.  The court processed the QDRO only to later find out that the funds could not be rolled over into the ex-spouse's designated account.  The court then ordered another QDRO to return the money to the participant's account.  The employer then refused to return the funds to the participant because the ex-spouse was not a high-earning employee of the company or any employee of the company.  The third party should not have approved the original QDRO to begin with because the participant was not transparent with the order of the court stating the funds need to be rolled over into a designated account.  Should the court rescind the original order for the funds to be placed back into the participant's account? To complicate things, the participant terminated employment shortly after the funds were placed in a parallel account, not the ex-spouse's designated account, her IRA. 

[EPCRSGuru]

Does the 457(b) plan document allow an Alternate Payee to maintain an account under this circumstance?

[fmsinc]

"The participant filled out a QDRO from the third-party administrator for a 457 (b) non-government account."

Were the funds to be paid FROM the 457(b) account or TO the 457(b) account?

 It is not clear what sort of Plan was the transferor  and what sort of Plan was the transferee.  

It is not the job of the Participant/Payor to ask the Plan Administrator or the TPA to transfer funds to the Alternate Payee's IRA or other eligible retirement account.  It is the job of the Alternate Payee to make that election after the QDRO has be approved and in most cases the Plan will contact the Alternate Payee and ask if he/she want's a tax free rollover to an IRA or other eligible retirement account, or a taxable distribution (less 20% Federal tax withholding, but no 10% early withdrawal penalty no matter what the age of the Alternate Payee).  The QDRO in most cases does not spell out the options available to the Alternate Payee, although I do so for informational purposes to let the Alternate Payee that he/she has those options. 

It seems clear that you are one of the parties and not a lawyer and have no idea how to present you situation.  You need to find a lawyer that understands the situation.