QDRO QDRO Plan Administration & Distribution Methods

Question 1

When a QDRO assigns a portion of a defined benefit plan to an alternate payee, which distribution option allows the alternate payee to receive benefits immediately upon the participant's earliest retirement eligibility date?

Accepted Answer

Separate interest approach

Answer

Shared payment approach

Answer

Lump sum immediate distribution

Answer

Deferred annuity election

Question 2

Under the shared payment approach in a defined benefit QDRO, when do the alternate payee's benefits cease?

Accepted Answer

Upon the participant's death

Answer

Upon the alternate payee's death

Answer

Upon whichever death occurs first

Answer

After 10 years of payments

Question 3

A plan administrator receives a QDRO that assigns a specific dollar amount rather than a percentage of the participant's account. This type of assignment in a defined contribution plan is known as:

Accepted Answer

Fixed dollar assignment

Answer

Percentage offset method

Answer

Coverture fraction method

Answer

Pro rata allocation

Question 4

Which method of dividing a defined benefit pension uses a formula that reflects only the marital portion of the benefit based on years of service during the marriage relative to total years of service?

Accepted Answer

Coverture fraction

Answer

Present value offset

Answer

Deferred distribution

Answer

Immediate offset

Question 5

In a defined contribution plan QDRO, what is the typical treatment of investment gains and losses on the alternate payee's assigned amount between the date of divorce and the date of segregation?

Accepted Answer

Prorated gains and losses are applied to the alternate payee's share

Answer

The alternate payee receives only the original assigned amount with no adjustments

Answer

All gains go to the participant; losses are absorbed by the plan

Answer

Investment results are split 50/50 regardless of assignment amount

Question 6

When a plan administrator segregates funds under a QDRO for an alternate payee in a 401(k) plan, the segregated amount is typically placed in:

Accepted Answer

A separate account in the alternate payee's name within the plan

Answer

A taxable brokerage account outside the plan

Answer

A joint account held by both parties

Answer

The plan's general trust fund pending distribution