QDRO's

[Rxusell]

I have to devide my 401K with my exwife. The divorce is finalized . My Lawyer says this will cost me several thousand dollars ( $3,000 plus) I was under the impression that QDRO's were special orders issued by the court as to how 401K's are to be devided. My New York Life Agent feels that they can split the
money up . Can I direct my Lawyer to give the Courts order to
New York Life and let them split the 401K ( at no charge)?

 

[dorenephilpot]

In Indiana, your attorney would prepare the QDRO, although an accountant could also do it.

Here's how we do it in my office: My clerk goes to the 401K plan administrator and gets a copy of a "model" document for their particular plan.

We use that as a base and individualize it for our client and submit it to the plan administrator for approval.

Once the plan administrator tells us it's OK as is, then we get everyone's signatures, submit it to the court for approval and then a finalized version to the plan administrator.

Unless your plan is particularly complex, generally I don't believe it would take $3,000 worth of attorney hours to complete this process.