Understanding the Ins and Outs of QDROs
I’m Tulsa divorce attorney Palmer Johnson. Welcome to my video series where I answer frequently asked questions about divorces, guardianships, and adoptions. Today’s question is what is a QDRO? A QDRO is a qualified domestic relations order and it’s a vehicle to allow you to transfer restricted funds without paying an early withdrawal penalty or a tax penalty specifically for 401k accounts.
If you were awarded a portion of your ex-spouse’s 401k in the divorce, you would need to submit a qualified domestic relations order that is drafted according to the plan administrator’s requirements. The court will then approve the order and you send it back to the plan administrator for processing.
Transferring Retirement Funds
Once the QDRO is approved and processed, the funds can be transferred into the qualifying account of your choosing. You don’t necessarily have to keep the account at the same institution if you have a banking relationship somewhere else. A QDRO is simply a legal vehicle that allows you to transfer retirement funds without penalties or tax consequences.
Get Legal Advice Today
If you found this information helpful or if you need legal services or advice on a divorce, adoption, or guardianship matter, please contact me at Moms.Law. Don’t hesitate to reach out for a low-cost consultation at 918-770-7117.