25 Apr Everything to Know About Dividing Retirement in Divorce – Qualified Domestic Relations Orders (Qdros)
[vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text]How To Divide Retirement in Divorce Without Taxes or Penalties
A common issue in divorce is how to divide a retirement plan without incurring penalties or owing taxes. Under Federal legislation known as ERISA (the Employee Retirement Income Security Act of 1974) a state court may order a retirement plan in another state to pay benefits directly to an employee’s former spouse. Under ERISA, a Qualified Domestic Relations Order (QDRO) issued by any state court must be honored by a qualified retirement plan regardless of which state the plan is administered in. Some executive level plans are exempted and may ignore a QDRO, but these are rare.