A Qualified Domestic Relations Order (“QDRO”) is a specific legal document required by the IRS and Department of Labor that allows a tax-free transfer of retirement plan assets to a spouse, former spouse or dependents involved in a proceeding for divorce or legal separation. The person in whose name the retirement plan is set up is called the participant. The person who receives a share of the participant’s retirement benefits is called the alternate payee. Because of special federal laws, plan administrators cannot provide payments to an alternate payee without a special order being drafted and submitted to the court for approval. In addition to court approval, the plan administrator (or their representative) must also approve the QDRO.
A poorly drafted QDRO will nullify or reduce benefits and can fail to provide investment flexibility to provide for future contingencies such as early retirement, cost of living, remarriage, and premature death or disability. Because of these risks, it is critical that domestic-relations attorneys and parties hire a QDRO expert to assist them with this process.
Our QDRO Services
Call our firm to discuss your QDRO needs. Our services include:
- Discussion of the QDRO process with the divorcing parties and their counsel.
- Reviewing the retirement plan including drafting the QDRO and offering copies of the QDRO to parties and their counsel.
- Submission of the QDRO to the plan administrator for pre-approval and for revisions that are required in order to have the plan accepted.
- Discussions with the plan administrator or their legal counsel as needed to deal with peculiarities of a particular QDRO
For more information about our QDRO services, call (303)863-0777 today and ask to speak to Mr. Jarrett.