A Qualified Domestic Relations Order (“QDRO”) is part of federal law that allows a domestic relations order in state court to transfer ERISA accounts, such as 401(k)s, from the spouse who is the “participant” in the plan to the other spouse without triggering a tax event. Typically, a QDRO is done in the context of a divorce of the spouses. However, there is nothing that limits a QDRO to the divorce context. Stephanie Prestridge and Marcus Foote with In Marriage QDRO, LLC, which pioneered the … [Read more...] about QDRO: Not Just for Divorce Anymore
Required Minimum Distributions
Naming a Trust as Beneficiary of an IRA or Qualified Plan Doesn’t Have to Be Scary
With IRAs and Qualified Plans, after the death of the “Participant” (the lifetime owner), there are required minimum distributions based on the life expectancy of the beneficiary. Often, people think that an individual must be named as the beneficiary of the retirement assets in order to use the beneficiary’s life expectancy and to prevent a forced faster distribution. But, that isn’t the case. A trust may be designated as the beneficiary. As long as the trust meets a few technical requirements, … [Read more...] about Naming a Trust as Beneficiary of an IRA or Qualified Plan Doesn’t Have to Be Scary
