Qualified Domestic Relations Order

What is the name of your state? Ca.

I have sent my ex-wife two copies (once in Sep. '01 and May '02)of a QRDO, that has been approved by the plan administrator of my companies 401K plan. She has yet to sign the form and return it to me. It is obvious to me that she is being stubborn and making me wait. Is there something else I can do to force her to sign the form or get it done processed with our her signing it. This has been dragging on to long and I just want this over with. Any advice you can give me will be greatly appreciated.

Thanks,
James

[I AM ALWAYS LIABLE]

Originally posted by Hoopbum
What is the name of your state? Ca.

I have sent my ex-wife two copies (once in Sep. '01 and May '02)of a QRDO, that has been approved by the plan administrator of my companies 401K plan. She has yet to sign the form and return it to me. It is obvious to me that she is being stubborn and making me wait. Is there something else I can do to force her to sign the form or get it done processed with our her signing it. This has been dragging on to long and I just want this over with. Any advice you can give me will be greatly appreciated.

Thanks,
James

My response:

Why are you "pushing" this issue? There is absolutely no need for you to get "this over with." The money that is in your account is drawing interest and inuring to your benefit. You have done everything that the court has ordered you to do, and if your wife doesn't wish to take advantage of what is rightfully hers, then all the better for you.

She has 4 years from the date that you sent her the paperwork. If she fails to take appropriate action within that time, then she'll be out of luck, and the entire 401K will remain yours.

"You can lead a horse to water, but you can't make her drink." So, sit back, and let "nature" take it's course.

IAAL

Thanks for the advice. It's just that if for some reason I would ever need to borrow from this 401K in an emergency situation, I would not be able to without this issue taken care of. I'd rather be safe than sorry. So, is there anything I can do to push this through and get it processed?

Thanks again,

[I AM ALWAYS LIABLE]

Originally posted by Hoopbum
It's just that if for some reason I would ever need to borrow from this 401K in an emergency situation, I would not be able to without this issue taken care of.

My response:

Where are you getting this information? Who is telling you this?

IAAL

I was told this by my benifits administrator here at my job. Is this not correct? Can I borrow from the plan if this QRDO is not yet processed?

[I AM ALWAYS LIABLE]

Originally posted by Hoopbum
I was told this by my benifits administrator here at my job. Is this not correct? Can I borrow from the plan if this QRDO is not yet processed?

My response:

Your Plan Administrator is completely misunderstanding his or her duties to you and your ex-wife. To protect the nonparticipant spouse's right to receive his or her share of benefits from the plan, she must obtain and serve on the plan a domestic relations order (or at least serve a notice of adverse interest) before the benefits are paid to the participant. There is no requirement, however, that a QDRO be obtained before the benefits become payable (i.e., before the participant's retirement, death or other benefit-triggering event). At the very least, your Plan Administrator has received, via the Court order, "a notice of adverse interest." Since that is the case, you are entitled to your share.

In other words, and since your 401K is "calculable," your 401K is available to you UP TO your share, just as if your wife has already taken her share from the 401K. For purposes of this situation, think of your account as a regular savings account. As long as her half (or whatever amount was ordered) remains in the account, your share remains available to you. To do otherwise would be an unlawful taking of your money.

Please, have your Plan Administrator show you the rule, regulation or statute, that allows a "freeze" on your account. If this were true, a person such as an ex-wife could place you in jeopardy at her whim.

IAAL

IAAL,
Thank you for the clarification on this issue. I guess I can go ahead and wait her out if she wants to play these childish games. Her money is just making me whealthier.

Very pleased,
James