Help - Search - Members - Calendar
Full Version: Segregated account for AP, then distribution
BenefitsLink Message Boards > Retirement Plans > Qualified Domestic Relations Orders (QDROs)
dbvail
We have a QDRO that directs the amount to be put in a separate account established under the plan, with language directing that distribution options then be provided to the AP. The plan does allow for payment to AP as a triggering event, but the Participant is over 50 anyway.
Can the AP subsequently rollover the segregated account to an IRA?
mbozek
If the APs interest is held in a segregated account then the benefits will be payable under any form available to any othe benes (unless otherwise restricted by the QDRO). If a LS option is available to a bene, the AP could roll the distribution to an IRA.
JanetM
mbozek, doesn't the AP have to be spouse or ex-spouse to do rollover?
dbvail
I assume mbozek was presuming the spousal conection. It is a good assumption in this case. The question was asked as the AP had been told that unless the payment were made directly from participant's account (versus from a segregated account), it would not be eligible for rollover. These darn advisors! I just wanted to check in and see if something new was happening. Thanks for the responses.
mbozek
IRC 402(e)(1)(B) provides that a spousal AP can rollover any portion of the retirement benefit received under a QDRO regardless of whether it is a separate account or shared interest.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.
Invision Power Board © 2001-2012 Invision Power Services, Inc.