The order of eligible household relationships (or QDRO , pronounced "gesture-dro" or "qua-dro"), is a court order in the United States, entered as part of division of property in a divorce or legal separation dividing a pension plan or pension plan by recognizing joint ownership of marriage under the plan, in particular the interests of the former spouse in the share of the asset. The QDRO recognition of ownership of spousal ownership in employee retirement plans (employees) provides some of the benefits of package participants to alternative payees. An alternative payee should be a spouse, ex-spouse, child or other depending on the plan participants. A QDRO may also be included for spousal support or child support.
QDRO only applies to employee benefits or pension plans that are subject to the Employees Retirement Income Act (ERISA), the American federal law governing private sector pensions. A comparable type of command divides military pension payments and federal civil service pension plans, and for state, district and municipal retirement plans in most countries. QDRO may provide the division of marital or community property between package participants and alternative payees, or for payment of child benefits or allowances to alternative payees.
QDRO should first be issued by the state-level courts of domestic relations, and then reviewed by the plan administrator to comply with the terms of the plan and with ERISA or other applicable law. QDRO may be a separate document or may be part of the divorce decree, and is valid as long as it complies with the standards for the qualification of domestic relations orders under ERISA and meets the standards of the plan for which it applies. The court has jurisdiction to declare QDRO "eligible" as being compliant with federal law, but the pension program administrator must determine whether QDRO meets the requirements of a special pension program.
Video Qualified domestic relations order
Definisi
Order of the Eligible Domestic Relation is an order of domestic relationship that creates or recognizes the existence of an alternative payee's right, or assigns an alternative recipient the right to, receive all or part of the benefits paid in respect of a participant under the qualification of the Plan (ie, sponsored employer ). The order of domestic relations is qualified by a plan administrator after determining the administrator's plan that the order meets the plan rules for segregation. Such an order is not related to the Plan not covered by ERISA.
The order of domestic relations is an assessment, decision, or order (including the approval of a property settlement agreement) which (1) relates to the provision of child support, payment of benefits or marriage rights to spouses, ex-spouses, children or other dependents of the participants, 2) made in accordance with the State's domestic law law (including property law).
Alternate payment recipients must comply with the ERISA definition of alternative payee - spouse, ex-spouse, child, or other person who relies on a plan participant recognized by a domestic relation who has the right to receive all or part of the allowance paid under the plan in respect of with the participants. Most countries will allow QDRO to be included to collect both the payment of child benefits that are due and future.
Package not covered by ERISA
Examples of retirement plans that are NOT covered by ERISA include military pension payments (covered by Uniform Uniform Used Safety Act), State and City pension plans, Federal Pension Plan (CSRS), Federal Employee Pension System (CSRS) FERS)) and Savings Account (TSP)), Individual Retirement Account (IRA) (SEP-IRA, SIMPLE IRA and Keogh Plan), and most of the deferred compensation plan. However, QDRO may be used to divide the IRA as it is "the divorce or separation instrument described in subsection (A) section 71 (b) (2)" under IRC section 408 (d) (6).
Maps Qualified domestic relations order
Distributive reward award
There are several methods for determining each party's share of the benefits of the plan. One relevant factor is whether participants are already registered in the Plan prior to marriage. If the plan of participation after the date of the wedding date, the respective party's share is (usually) 50% * of the beneficial value of the participant on the date of the commencement of the divorce action, the implementation of the settlement terms approves the distribution, separation or entry of the divorce decree (which date is earliest or approved by parties related to the divorce).
If the plan of participation before marriage, some countries use Majauskas , or the closing formula . A distributive ratio is formed by dividing the duration of plan participation (in months) by the duration of marriage (in months). Using such a formula, the alternative payee portion is therefore proportional to the length of the marriage while the plan participants are covered by the plan, and may be subject to negotiation and set-off from the distribution of other marital property. The remaining portion of the plan benefits are imposed on the plan participants.
Requirements for Order
The court order for QDRO must comply with three sets of general rules, namely, (1) the requirements of the plan itself, (2A) the ERISA requirements, which are essentially parallel to (2B) US tax code requirements; and (3) domestic legal relations applicable:
- Compensates with and cites applicable state Household law. Applicable State Laws and their standards are specific to each state, for example, in connection with DRL New York §§§§§§§ 366, distribution must be "fair" (fair).
- US. Tax code. Preservation of any deferred tax status of the program benefits is the responsibility of the movers.
- The Internal Revenue Code contains requirements that are essentially parallel to those in ERISA, for example, the distribution method should be selected from among the options available to package participants, in accordance with the package requirements, and the order should not require a plan to distribute participants' benefits in a way which is not in accordance with the provisions of the plan.
All QDRO must contain certain information:
- The official name of the plan,
- The full name and last mailing address of the participant, employee or contributor (various are referred to as "Plans Participant," "Payee" or "Distributee"), and "Alternate Payee" (spouse, ex-spouse or payee more),
- Social Security Numbers of both parties, (for privacy purposes often given to plan administrators in separate scopes),
- The participant's plan identification number if different from the participant's Social Security Number,
- The amount or portion of the benefit package is paid to the alternative payee and the method used to calculate that amount, and
- For the defined benefit package, the duration for which the benefit is paid to the alternative payee.
References
External links
- QDRO, Extensive information from the Department of Labor
- US. Code Ã,§ 26 (414), Section 414 of the Internal Revenue Code.
Source of the article : Wikipedia
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