Terminated 401(k) plan paid out all benefits, but overlooked an exisiting QDRO that assigned 1/2 of a participant's benefit to an alternate payee. The alternate payee recently inquired about receiving his benefit and that he plans on rolling the benefit to an IRA. Since the plan and trust are long gone, the employer will pay the benefit out of their general assets. Please tell me if I'm wrong, but I don't think there is anything that the employer can do to create any kind payment that could be rolled to an IRA or another employer's qualified plan. I don't even think this is a benefit at this point...it's really a settlement payment.

Randy,

I'd suggest you analyze your facts in light of IRS Letter Ruling 200705031, November 9, 2006, and IRS Private Letter Ruling 200213032, January 2, 2002.

200213032 was very helpful. Thanks.