QDRO Compliance & Regulatory Requirements 2

Question 1

Under ERISA, what is the maximum time a plan administrator has to determine whether a domestic relations order is a QDRO?

Accepted Answer

18 months

Answer

ERISA section 206(d)(3)(H) gives plan administrators 18 months from the date the first payment would be required to make a QDRO determination.

Question 2

Which federal law primarily governs QDRO requirements for private-sector retirement plans?

Accepted Answer

ERISA

Answer

ERISA (Employee Retirement Income Security Act of 1974), specifically section 206(d)(3), establishes the QDRO framework for private-sector plans.

Question 3

A QDRO assigns benefits under a retirement plan to an 'alternate payee.' Which of the following can qualify as an alternate payee?

Accepted Answer

Spouse, former spouse, child, or other dependent

Answer

ERISA defines alternate payee as any spouse, former spouse, child, or other dependent of the participant who is recognized by a domestic relations order.

Question 4

When a plan receives a domestic relations order, it must promptly notify which parties?

Accepted Answer

The participant and each alternate payee named in the order

Answer

Upon receipt, the plan administrator must promptly notify both the participant and each alternate payee of the receipt and its QDRO determination procedures.

Question 5

What happens if a domestic relations order is received during the 18-month determination period and later found NOT to be a QDRO?

Accepted Answer

Segregated amounts are paid to the participant as if the order never existed

Answer

If the order is ultimately found not to be a QDRO, the segregated amounts (plus any earnings) must be paid to the participant.

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

QDRO Compliance & Regulatory Requirements 2