What is a Qualified Domestic Relations Order (QDRO)?
A QDRO allows you to split up the allocation of qualified retirement plans. It’s simply an order that is filed with the court that properly assigns an “alternate payee” to qualified retirement plans. Because you are not splitting simple assets and you don’t want to take a tax hit for withdrawing from tax-deferred retirement funds early (i.e. IRA), you need something a little more robust to make sure you and your family are taken care of as you get older.
Why not Withdraw from Retirement Funds Now?
It’s fairly simple: Avoid tax implications from withdrawing retirement funds early from tax-deferred retirement plans. There is no reason for you to take that money out of those accounts today when your tax burden will be at it’s heaviest. A QDRO allows you to feel safe moving forward know that those retirement benefits will be there when you need them.
Should you Create a QDRO on Your Own?
It’s not recommended. You can put yourself at a major disadvantage if you try to create a QDRO on your own. You may miss benefits that you are entitled to. Some retirement plans can charge fees for enacting a QDRO. You may even find that you have created a QDRO that improperly layouts your benefits and therefore is not legally correct. Don’t take the fate of your retirement into your own hands, have your QDRO created by us today and ensure your financial future.