@SeekingAdvice
Junior Member
What is the name of your state (only U.S. law)? PA
Our court ordered marital property division agreement says the marital portion of my 401(k) plan shall be divided 50%-50% between me and my ex by Qualified Domestic Relations Order. If defines "marital portion" as the value of the 401(k) plan on the date of separation which is also specified in the agreement. This agreement was put in effect 8 years ago but my ex never obtained a QDRO. I am retiring and requested a roll-over of my 401(k). My company asked me to provide copies of any QDRO's, marital property division agreements, etc which I did. I also added a few notes highlighting the part of the agreement which referred to my 401(k) plan to be sure no one thought I was trying to pull a fast one. My company then sent me and my ex a letter saying we had 30 days to produce a QDRO. My ex did not produce a QDRO but called my company and said she had an attorney and would be getting a QDRO. Based on this, my company sent us a second letter saying they are going to segregate my ex's share and give her 18 months to produce a QDRO. To give you a feel for the money involved, my 401(k) plan is currently about $60k and my ex's share is about $1300.
Here is my problem. The second letter says they are going to split my 401(k) plan 50%-50%. The letter does not mention the marital portion and gives the clear implication it is going to segregate and hold 50% of the total current value of my 401(k). I called my company immediately and they assured me the letter was incorrect and they would only segregate 50% of the marital portion. I asked them to confirm this in writing but they will not. I will be getting the pay-out on July 1 but have no idea exactly what my company is going to pay out.
I have two questions: (1) Is it legal for my company to segregate and hold a portion of my 401(k) plan without a QDRO? (2) Do I need an attorney or can I be confident my company will follow the law?
Thank-you.
Our court ordered marital property division agreement says the marital portion of my 401(k) plan shall be divided 50%-50% between me and my ex by Qualified Domestic Relations Order. If defines "marital portion" as the value of the 401(k) plan on the date of separation which is also specified in the agreement. This agreement was put in effect 8 years ago but my ex never obtained a QDRO. I am retiring and requested a roll-over of my 401(k). My company asked me to provide copies of any QDRO's, marital property division agreements, etc which I did. I also added a few notes highlighting the part of the agreement which referred to my 401(k) plan to be sure no one thought I was trying to pull a fast one. My company then sent me and my ex a letter saying we had 30 days to produce a QDRO. My ex did not produce a QDRO but called my company and said she had an attorney and would be getting a QDRO. Based on this, my company sent us a second letter saying they are going to segregate my ex's share and give her 18 months to produce a QDRO. To give you a feel for the money involved, my 401(k) plan is currently about $60k and my ex's share is about $1300.
Here is my problem. The second letter says they are going to split my 401(k) plan 50%-50%. The letter does not mention the marital portion and gives the clear implication it is going to segregate and hold 50% of the total current value of my 401(k). I called my company immediately and they assured me the letter was incorrect and they would only segregate 50% of the marital portion. I asked them to confirm this in writing but they will not. I will be getting the pay-out on July 1 but have no idea exactly what my company is going to pay out.
I have two questions: (1) Is it legal for my company to segregate and hold a portion of my 401(k) plan without a QDRO? (2) Do I need an attorney or can I be confident my company will follow the law?
Thank-you.
