781.708.4445

wmlevine@levinedisputeresolution.com

Divorce Mediation Blog

Did You Know – A Hidden QDRO Cost

Wednesday, July 22, 2015

We learn something new every day.

Between us, we have drafted agreements, written judgments and crafted awards that required parties to create Qualified Domestic Relations Orders (QDRO’s) to transfer retirement assets after divorce. We always knew well enough to opt for IRA-to-IRA transfers when possible, because can usually be accomplished by authorization letter alone, with no QDRO required. This makes sense because it saves drafting and presentment fees as well as processing time.

Then, recently, we set up a 401k plan for ourselves and read some of the fine print, only to learn that the plan administrator has the right to charge hourly-based fees for QDRO processing. Since we never see the back end of the transaction in any of our clients’ cases, we had no reason to know this; and we wonder how many clients or their lawyers are aware of this, either?

Maybe it is unavoidable, and it may not add up to much; but it is one more reason to look more closely at selecting qualified retirement plans before they are divided if only for cost efficiency.

Who knew?



Get e-mail notifications of new blog posts! Enter email address below.:



Delivered by FeedBurner

other articles


recent posts


tags

Self-adjusting alimony orders disputes Massachusetts alimony Boston Baseball arbitration arbitrators family and probate law disputes Massachusetts divorce lawyers family law arbitrator The Seven Sins of Alimony alimony law Alimony Reform Act facilitated negotiations Baseball Players pre-ARA alimony support orders alimony divorce litigation lawyer alimony statute Divorce Agreements IRC §2704 Baseball Arbitration Massachusetts divorce mediators medical benefits lawyer-attended mediation health insurance divorce judgment Cohabitation annulment med-arb family law mediators Act Reforming Alimony in the Commonwealth Matrimonial Arbitration private dispute resolution Major League Baseball Arbitration traditional negotiations Same Sex Marriage Divorce family support divorce process LDRC COLA child support divorce mediator Massachusetts lawyers Defense of Marriage Act Family Law Arbitration divorce agreement resolve disputes Levine Dispute Resolution Center family law mediation divorce and family law mediators Uniform Arbitration Act how baseball arbitration works Child Support Guidelines litigation mediator alimony orders alimony reform legislation divorced Levine Dispute Resolution divorce and family law divorce mediation conciliation separation divorce mediators divorce arbitrator self-adjusting alimony dispute resolution SJC mediations MLB labor agreement Chouteau Levine fraud divorce arbitration mediation Massachusetts lawyers family mediation divorce mediations Massachusetts Lawyers Weekly arbitrator Obamacare Levine Dispute Resolutions med/arb family law arbitrators divorce arbitrators divorce lawyers Massachusetts alimony and child support Massachusetts Alimony Reform Act special master DOMA General term alimony rehabilitative alimony Levine Dispute Resolution Center LLC high-risk methodology health coverage