Is there a statute of limitations for filing a QDRO?
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Is there a statute of limitations for filing a QDRO?
A judgment of divorce requires that a QDRO be filed in order to receive the benefits from a retirement plan associated with the divorce. This is subject to the ten year statute of limitations as outlined by MCL 600.5809, which states: For normal purposes this would begin the accrual period on the QDRO.
Does a QDRO expire?
The QDRO does not expire, but you should implement it as soon as possible.
Who pays tax on a QDRO?
A QDRO distribution that is paid to a child or other dependent is taxed to the plan participant. An individual may be able to roll over tax-free all or part of a distribution from a qualified retirement plan that he or she received under a QDRO.
What should I do with my QDRO?
If you can afford to wait, the better move may be to leave the money in the QDRO 401(k) or another plan so that the assets can continue to grow tax-deferred until retirement. Another option is to leave the money in the spouse’s plan but retain the ability to invest your portion as the alternate payee as you choose.
