Frequently Asked Questions

Below is some Common Terminology and groups of Frequently Asked Questions.

The answers hold true for most cases however there are many nuances. If you would like clarification based on your specific situation, please email us at info@qdroadvisors.com with your question and the name of the retirement plan or fill out the form at the bottom of the page. 

Common Terminology

Person who owns the retirement account and/or pension

Person who will be receiving part of the retirement account and/or pension

The account or pension being separated

Includes a broad range of plans including:

– 401(K), IRA, 403(B), Annuity, Deferred Compensation Plans,

– 457, TSP, Keogh, Money Purchase Pension Plan, Profit Sharing Plans

– Pension Plans

– Cash Balance Pension Plan

QDRO FAQ

  • A QDRO or Qualified Domestic Relation Order is a domestic relations court order that creates or recognizes the right of an Alternate Payee to receive all or a portion of the benefits payable under a retirement account or pension
  • QDROs are most commonly used to provide a spouse their share of marital property.
  • QDROs are also used to provide for alimony, child support, and benefits to dependents.

Use the online order form to provide the necessary information and documents. We will walk you through each step of the process from start to finish.

  • Submit the required information via our website(link)
  • A case manager will review the submitted information for completeness
  • Your QDRO will then be drafted by one of our experts
  • We will send the QDRO draft to the client and/or attorney for pre-approval
  • Once pre-approved, we will send the draft QDRO to the plan administrator (non-IRAs) for review
  • Plan Administrators will pre-approve or recommend changes to the QDRO:
    • If changes are recommended, we update the QDRO and resubmit to the Plan for approval
  • Once we receive approval, we will provide the client and/or attorney with a final copy of the QDRO and the plan pre-approval letter (if applicable)
  • Client and/or Attorney will be responsible for submitting the QDRO and pre-approval letter to the Court for the Judges signature
  • Client and/or Attorney submits QDRO, signed by judge, back to plan for processing

The Plan will divide the account and/or pension as specified in your QDRO and in accordance with the Plan’s policies and procedures

This varies significantly based on plan and plan type. Assuming you provide all necessary information up front:

    • 3 to 4 weeks to process, review, & draft
    • 6-8 weeks for plan pre-approval
      • Some plans take much longer to provide pre-approval. There are no set rules as to how long a plan can take to review a QDRO

Missing information

  • Payment
  • Retirement Plan statement/pension information
  • Stipulation of settlement language
  • Judgment of Divorce required
    • Required by most state government plans
  • Plan Administrator information is lacking
    • In order to obtain plan pre-approval which is required by the Courts, we must know who the plan administrators are in order to submit the QDRO for review. (QDRO Advisors, Inc. Is not responsible for researching this information and is not part of our fees

Client and/or Attorney Approval

  •  
  • 1-30 days
    • Depends on how long parties take to review. We will automatically assume approval and send to plan after 60 days

Plan Delays

  • Plan receives many QDROs to review
  • Plans normally respond in 60 days more or less
  • Participants Information Alternate Payee’s Information
  • Attorney’s Information
  • Retirement and Pension Plan Information
  • Retirement and Pension Plan Statements
  • Stipulation of Settlement
  • Judgment of Divorce (only for some plans)

No, however most do. The most common plans that do not require a QDRO are some IRAs and some non-qualified accounts. Typically, all qualified plans require a QDRO to make a distribution to a spouse under Department of Labor regulations

As long the QDRO is issued pursuant to state domestic relations laws recognizing your right to receive benefits.

Defined Contribution Plans – IRA, 401(k), 403(b), 457, etc.
  • The Plan will notify you and provide you with the means of how to receive your distribution in accordance with the plans policy and procedures
  • Your distribution may be rolled over into an account in your name with the retirement plan or in another plan of your choosing
  • In some cases, a lumpsum distribution may be received in accordance with the plans policy and procedures and IRS Code
Defined Benefit Pension Plan
  • If the Participant is retired, the plan will make the arrangements to make your distribution as soon as administratively feasible following the date they receive your signed order from the Court. Typically, this is in the form of a monthly payment
  • If the Participant is not retired, the plan will place the QDRO in the Participant’s file until such time as the Participant elects to retire or in some cases when the Alternate Payee elects to commence benefits.
 

Assets received pursuant to a QDRO are typically rolled over to an IRA account or to another qualified plan. However, other forms of distributions may be allowed.  You should consult your financial professional.  If you do not have one or wish to discuss your options click here

  • Distributions are taxed based on account type and form of distribution. It’s best to consult a financial professional for personalized guidance (Click here to request convo).
  • Generally speaking, if you roll the funds into an IRA or other plan, you will not be taxed until making a withdrawal. If you do not, you may be subject to a 10% penalty and income tax.
  • Taxes on distributions provided for child support are paid by the plan participant

 

No.  As long as the QDRO is issued pursuant to state domestic relations laws recognizing your right to receive benefits.

However, some governmental plans may require a divorced decree to divide benefits

Pension Valuation FAQ

A pension valuation is used to determine the present value of your future steam of monthly payments

Your attorney or mediator has recommended that you have your pension evaluated in order that a value can be put on your pension benefits for the purpose offsetting with other assets that you and your spouse may own.

  • Complete our pension valuation package which includes parties’ information,
  • Authorizations, retainer agreement, and fees.
    •  
  • There are many factors, however the most important factor is the plan.
  • Some plans are quicker than others in providing the necessary information. Typically, 60 to 90 days is average with some being less and some taking longer.
    •  

    Usually, the valuation is completed within 3 to 5 business days unless additional information is required or clarification of information is required (you or your attorney will be notified if there are any issues).

  • If you are represented by an attorney, your attorney will receive the report
  • If you are acting on your own or through a mediator, you will receive the report

    • We have testified in Court (see our fee schedule)

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