A 58-Year-Old Divorcee With $1.4 Million From a QDRO Discovers She Cannot Roll It Until She Resolves a 15-Year-Old Court Order
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A 58-Year-Old Divorcee With $1.4 Million From a QDRO Discovers She Cannot Roll It Until She Resolves a 15-Year-Old Court Order
A 58-year-old woman with a $1.4 million 401(k) share from a 2010 QDRO cannot roll the funds into an IRA or make any distribution because the QDRO’s survivor-benefit language is ambiguous. The plan administrator refuses to execute the order until the original divorce court resolves the ambiguity. ERISA §414(p) requires QDROs to meet specific drafting standards before plan administrators can act. If a material term is unclear, including who receives survivor benefits if the participant dies before payout, administrators must refuse execution. The result is a liquidity gap for bridge years and potential reliance on other assets.
#qdro #erisa #retirement-planning #divorce #401k
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