What is a QDRO/DRO and why do I need one?

 

A QDRO is a judgment, decree or order for an ERISA-governed retirement plan to pay child support, alimony or marital property rights to a spouse, former spouse, child or other dependent of a participant directly from an employer-sponsored retirement plan.  You cannot get money from an ERISA-governed plan without a QDRO, due to the anti-alienation provisions of the plan.s

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A DRO is similar to a QDRO but is needed for non-ERISA plans, such as deferred comp, SERP and executive plans and may also be honored by  some government, state and municipal plans that are not normally subject to QDRO requirements.

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A QDRO allows for a tax-free transfer of retirement assets to a spouse or former spouse for marital property rights.  A QDRO can also allow for the payment of child support and/or alimony/maintenance, although payments are usually taxable to the Participant.  A DRO also allows for a transfer of retirement and/or executive comp assets but taxes may apply to those distributions.

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QDRO direct, LLC

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We provide QDRO services through our affiliated firm QDRO direct, LLC.  Through QDRO direct, LLC, we also provide pension and stock option valuations, marital tracing, investment gain/loss analysis and expert witness testimony services.

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Please visit QDRO direct, LLC to learn more.