Qualified Domestic Relations Order (QDRO)

A qualified domestic relations order (QDRO) is a specialized court order usually created pursuant to a divorce, or child support order, which authorizes a retirement plan to split the accounts between the parties. A QDRO is a federally-mandated order, which is issued by the family court, that granted the divorce. A QDRO must be carefully drafted to the exact specifications of the retirement plan, and it must also meet both federal and family court standards.

Retirement plans we work with

We provide QDRO preparation services for private, government, and military retirement plans including:
  •  Individual Retirement Accounts 401(K)
  •  Defined Contribution Plans
  •  Defined Benefit Plans
  •  Thrift Savings Plans (TSP)
  •  Private Pension Plans
  •  Civil Service Pension Plans
  •  Military Pension Plans

Special rules to keep in mind when dealing with distributions from a QDRO

  • Generally the IRS 10% early distribution tax penalty is waived for the plan participant when funds from an eligible retirement plan is subdivided incident to a divorce and executed via a QDRO.
  • A QDRO distribution that is paid to a child or other dependent is taxed to the plan participant.
  • The receiving spouse may be able to roll over tax-free, all or part of a distribution from a qualified retirement plan, which is received under a QDRO.
  • You must include in your income, any part that you don't roll over within 60 days to another qualified retirement plan or to a traditional or Roth IRA.
  • Also 20% of the distribution may be withheld by the plan administrator for income tax purposes.
  • You can file for a return of the 20% withheld when you do your annual taxes.
  • See IRS Publication 575 and IRS Publication 504

Our QDRO Services Include

  • Personalized service from start to finish
  • Review of your property settlement agreement
  • Identification and verification of all accounts
  • Obtaining agreements from the parties
  • Drafting an initial order to comply with your property settlement agreement
  • Working with the plan administrator throughout the pre-approval process
  • Prepare final order for submittal to your local family court for signature
  • Obtain the necessary certified orders
  • Submit QDRO package to the plan administrator for processing

 

 

 

27212 Foamflower Blvd, Wesley Chapel, FL 33544
(813) 966-4503