It is important for any Marital Settlement Agreement or Marital dissolution Agreement outlining the division of a 401(k) to clearly state the date of division. This is important because there are other types of retirement plans, such as pensions or defined benefit plans, cash balance plans, military retired pay and federal pensions that may not be divided with a QDRO. Prior to seeking to divide a retirement account via a QDRO, it is imperative to ensure the account is a defined contribution plan such as a 401(k). Although this process ensures that both spouses are aware of the retirement accounts held by the other spouse, the parties may still be unaware of exactly what kind of account that retirement account is. However, as each matter unique and often the specifics of 401(k) plans vary from employer to employer, it is important to consult a Georgia attorney who is well versed regarding the division of 401(k)s.ĭuring a divorce in Georgia, it is mandatory for each spouse to disclose financial assets to the other party, including any retirement accounts. Below are a few issues that should be considered prior to dividing a 401(k) upon divorce. The division of one or both spouses’ 401(k) upon divorce is a complicated matter involving both legal and financial matters. In other words, this federal law allows 401(k)s and other retirement plans to be divided between spouses upon divorce.
#Quadro 401k code
See Internal Revenue Code § 414(p) and ERISA § 206(d). The Retirement Equity Act is a federal law that allows retirement plans, such as 401(k)s to distribute money to someone other than the plan participant. It is highly advisable for any couple seeking to divide a 401(k) upon divorce to engage an attorney who specializes in asset division to ensure the QDRO necessary to divide the 401(k) to ensure that the order complies with the Retirement Equity Act of 1984.
A QDRO is an order that is separate and distinct from the Final Decree of Divorce and must generally be prepared by one party’s attorney and presented to both the administrator of the retirement plan subject to division and the presiding judge for approval. This order, commonly referred to as a QDRO, is not the Final Judgment and Decree of Divorce. To divide a 401(k) in a Georgia divorce, it is necessary to have a Qualified Domestic Relations Order approved by a judge once the divorce has been finalized.
401(k) plans, unlike IRAs, may not be divided upon divorce by simply transferring funds from one account into another.
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