QDRO Compliance & Regulatory Requirements 4

Question 1

A QDRO specifying benefits for a plan that has been merged into another plan must be honored by the successor plan under which principle?

Accepted Answer

The successor plan assumes all QDRO obligations of the merged plan

Answer

Under ERISA, a successor plan that assumes liabilities in a merger also assumes existing QDRO obligations — the alternate payee's rights survive the plan merger.

Question 2

For a 403(b) tax-sheltered annuity plan, which of the following statements about QDROs is correct?

Accepted Answer

IRC § 414(p) QDRO rules apply, but ERISA procedural requirements may not fully apply depending on the plan type

Answer

IRC § 414(p) applies to 403(b) plans for tax purposes, but some 403(b) plans (e.g., church plans) may be exempt from ERISA procedural requirements.

Question 3

Under IRC § 402(e)(1)(A), mandatory 20% federal withholding applies to eligible rollover distributions. How does this rule interact with QDRO distributions to an alternate payee?

Accepted Answer

The 20% withholding applies unless the alternate payee rolls the distribution to an IRA

Answer

QDRO distributions that are eligible rollover distributions are subject to 20% mandatory withholding unless the alternate payee elects a direct rollover to an IRA or other eligible plan.

Question 4

A QDRO is received after the participant's death but before benefits have been distributed. Under ERISA, how should the plan respond?

Accepted Answer

The plan must evaluate the order and, if valid, pay benefits to the alternate payee in priority over other beneficiaries as specified

Answer

A valid QDRO received after the participant's death can still be honored if it was entered before the participant's death and the plan has not yet distributed the benefits.

Question 5

The plan administrator's QDRO determination procedures must be established and maintained in writing and made available to participants and alternate payees. This requirement comes from:

Accepted Answer

ERISA § 206(d)(3)(G)

Answer

ERISA § 206(d)(3)(G) specifically requires that plan administrators establish reasonable written QDRO determination procedures and provide them upon request.

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

QDRO Compliance & Regulatory Requirements 4