Another issue that seems to be rearing its head is how domestic relations orders will be treated under the AJCA. Because there are strict NQ distribution situations, with no guidance as of yet with regard to ordered distributions from an NQ plan, how do you think these will be handled? I've looked high and low for some information and have come up empty. Any ideas? Any direction? Thank you.

From page 731 of the Conference Report:

"It is intended that the Secretary will provide other, limited, exceptions to the prohibition on accelerated distributions, such as when the accelerated distribution is required for reasons beyond the control of the participant and the distribution is not elective. For example, it is anticipated that an exception could be provided if a distribution is needed in order to comply with Federal conflict of interest requirements or a court-approved settlement incident to divorce."

The Conferee Report discussion of material modification does not include a similar statement.

As noted in other posts, the restictions on distributions may be limited to salary reduction accumulations but not to SERPS and other forms of employer payments.