QDRO Compliance & Regulatory Requirements 5

Question 1

Under IRS Notice 97-11, what guidance is provided regarding model QDRO language?

Accepted Answer

It provides sample language plan administrators can use and clarifies key QDRO drafting requirements

Answer

IRS Notice 97-11 provides model QDRO language and addresses common drafting questions to help plan administrators and practitioners comply with IRC § 414(p).

Question 2

Under ERISA, can a plan impose fees on participants or alternate payees for processing a QDRO?

Accepted Answer

Yes, if the plan document authorizes such fees and they are reasonable

Answer

Plan administrators may charge reasonable QDRO processing fees if such fees are authorized by the plan document and consistently applied.

Question 3

A participant in a 401(k) plan has both pre-tax and Roth contributions. A QDRO awards the alternate payee 50% of the account. How are the tax attributes of the awarded amount treated?

Accepted Answer

The alternate payee receives a proportionate share of both pre-tax and Roth sub-accounts, maintaining their respective tax character

Answer

When a QDRO divides a 401(k) account with both pre-tax and Roth amounts, the alternate payee receives a proportionate share of each sub-account and the tax character of each portion is preserved.

Question 4

Which regulatory body has primary enforcement authority over private-sector plan compliance with QDRO procedures?

Accepted Answer

The Department of Labor (DOL)

Answer

The DOL has primary authority to enforce ERISA's QDRO procedural requirements for private-sector plans, including reviewing plan administrator procedures.

Question 5

A QDRO that assigns benefits from a SIMPLE IRA is:

Accepted Answer

Not possible — QDROs apply only to employer-sponsored qualified plans, not IRAs

Answer

QDROs only apply to employer-sponsored retirement plans; IRAs (including SIMPLE IRAs) are divided using a transfer incident to divorce under IRC § 408(d)(6), not a QDRO.

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

QDRO Compliance & Regulatory Requirements 5