QDRO Legal Foundations of Domestic Relations Orders 4

Question 1

Which of the following plan types is NOT subject to the QDRO rules under ERISA?

Accepted Answer

A governmental retirement plan such as a state teachers' pension system

Answer

Governmental plans are exempt from ERISA's QDRO requirements, though many states have enacted parallel 'QDRO-like' order rules for their public pension systems.

Question 2

A QDRO is entered but the plan administrator has not yet determined its qualified status. During the 18-month determination period, benefits that would be payable to the alternate payee must be:

Accepted Answer

Segregated and held separately, then paid to the alternate payee if the order is determined to be a QDRO

Answer

ERISA requires the plan to segregate amounts payable to the alternate payee during the 18-month review period and pay them out if the order is ultimately qualified.

Question 3

A QDRO specifies that the alternate payee shall receive benefits 'in the same form elected by the participant.' This approach is characteristic of which QDRO payment method?

Accepted Answer

Shared payment approach

Answer

The shared payment approach ties the alternate payee's benefit form and timing directly to whatever elections the participant makes at retirement.

Question 4

An alternate payee who receives a distribution from a qualified plan pursuant to a QDRO may roll over that distribution to an IRA. The tax treatment of such a rollover is:

Accepted Answer

Treated the same as any eligible rollover distribution, allowing tax-free rollover within 60 days

Answer

QDRO distributions to alternate payees are treated as eligible rollover distributions, allowing a tax-free rollover to an IRA within 60 days (or via direct rollover).

Question 5

Which document governs the procedural requirements a plan imposes on QDRO submissions, such as model order language or acceptable formats?

Accepted Answer

The plan's QDRO procedures, which must be established and maintained by the plan administrator

Answer

ERISA requires every plan to establish reasonable QDRO procedures, and practitioners must review these procedures before drafting an order.

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

(QDRO) Certified Qualified Domestic Relations Order Specialist Practice Test

QDRO Legal Foundations of Domestic Relations Orders 4