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QDRO

At The Next Chapter Divorce, we facilitate efficient and affordable Qualified Domestic Relations Order (QDRO) preparation services for clients and attorneys.

Properly addressing a QDRO helps avoid tax liabilities and delays in accessing retirement benefits. The Next Chapter Divorce has partnered with a QDRO expert who has drafted over 5,000 QDROs and specializes in the division of retirement benefits, including Military Retired Pay and Federal Service Retirement Systems.

 

Services include:

  • QDRO Review

  • QDRO Preparation

  • Flat-Fee Services with transparent pricing

  • Pension valuation

  • Client and Attorney Assistance

  • Suggested Retirement Account Division language for the Decree/MSA

  • Plan Discovery on terms, conditions, elections options, elections in pay

  • QDRO Discovery on division options

  • Market Fluctuation or Earning/Loss Tracing

 

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FAQ About QDROs
(Qualified Domestic Relations Orders), along with brief answers and references:

  • What is a QDRO?
    A QDRO is a legal order that allows the division of certain retirement benefits in a divorce or legal separation. (Reference: Employee Benefits Security Administration, U.S. Department of Labor)
  • What types of retirement plans require a QDRO?
    QDROs are typically needed for qualified plans under ERISA, such as 401(k)s and pension plans. IRAs usually don’t require QDROs. (Reference: Internal Revenue Code Section 414(p)
  • How long does it take to process a QDRO?
    Processing times vary, but it typically takes 3-6 months from submission to approval. (Reference: American Bar Association, Section of Family Law)
  • Who is responsible for preparing the QDRO?
    Either party’s attorney can draft the QDRO, or a specialized QDRO professional can be hired. (Reference: American Academy of Matrimonial Lawyers)
  • Are there tax implications for QDRO distributions?
    QDRO distributions are typically not subject to the 10% early withdrawal penalty, but may still be subject to income tax. (Reference: IRS Publication 575)
  • Can a QDRO be modified after it's approved?
    Generally, once a QDRO is approved and implemented, it cannot be modified unless both parties agree or there’s a court order. (Reference: Journal of Accountancy, “QDROs: The Division of Retirement Benefits Through Qualified Domestic Relations Orders”)
  • What happens if a QDRO is not obtained?
    Without a QDRO, the non-participant spouse may lose their right to a portion of the retirement benefits. (Reference: American Bar Association, “Fundamentals of QDROs”)

Remember, while these are common questions, QDRO rules can be complex. It’s always best to consult with a legal or financial professional for specific situations.

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