QDRO question


Our draft SA (that we wrote ourselves) states the amount of the QDRO that my ex will receive for our ED. This was drafted several months ago and I’ve contributed from my paycheck twice a month for 8 months now and there have been positive market improvements as well so now the amount is totally different. And it will continue to change up until the date of actual distribution. I assume we need to update the wording to read that the QDRO amount would be based on positive/negative market adjustments and not contributions/withdrawals at the time of distribution, rather than listing a specific dollar amount. At what point in the QDRO process does the amount get finalized and does the plan administrator figure it out for you? Or do you have to do it and tell them the amount? Not sure how this works.


The plan administrator will take direction from the plain language of the QDRO. The amount received should be based on the valuation date as agreed to by the parties, normally the date of separation. The alternate payee would also be entitled to earnings (dividends, interest, gains and losses) on his or her portion from the valuation date to the date that award is segregated from the participant’s account.


Is there some sample language somewhere that I should look at using?


The best place to obtain sample language would be from the Plan. Most Plans have sample QDROs that conform to their individual requirements.