A defined contribution plan and a defined benefit plan are different and they can be identified by the wording of them. For example, a defined benefit plan is this: You don’t know what you’re going to be putting in every week. It might 6% of your salary, 6.5% of your salary, 7% of your salary, […]
Pensions, Retirement Plans, QDROs
Contributions made from the working spouse’s wages to the working spouse’s retirement accounts during the marriage would be considered marital property and subject to distribution under Maryland law. There’s a difference between pensions, which are known as defined benefit plans and retirement plans such as 401Ks or Roth IRAs, which are known as defined contribution […]
In dividing pensions I think the first place to look is whether or not the recipient spouse is in pay status or not. If the recipient spouse is in pay status, in other words they’re already receiving their monthly or quarterly, or periodical benefit, however it’s paid. Then it’s just a function of figuring out […]
Yes. All property, legally and beneficially acquired during the marriage or civil union, shall be subject to equitable distribution. Non-vested retirement benefits are still an asset and they are unvested until they become vested. So a lot of plans might say you vest after ten years. Let’s assume for a second that you’re in that […]
Can you access retirement funds without penalty when it comes to divorce and property division? Read on to see what attorney Cynthia Ann Brassington says.
A Qualified Domestic Relations Order is actually the court order that divides up a qualified retirement plan. There are outside services that also prepare QUADROs. Over time we’ve found that often those outside services charge more money than what we charge to do it. It’s not unusual for us to find in the preparation of […]
Learn the difference between an IRA and a qualified pension plan, so you may know what financial consequences can arise during your divorce.
Typically, because you’re going through a divorce, there’s an exception in the tax code that allows you to divide a retirement account with what’s called a Qualified Domestic Relations Order (QDRO). If you do it correctly with a QDRO on a 401(k) plan, or there’s special forms if you’re going to divide a PERS plan, […]
Retirement assets are all different. You can’t just call retirement assets “pensions.” Pensions are a very specific type of retirement asset that are kind of old school that the big companies used to have in the past where you didn’t really have an account with any value in it. You were just told that when […]
It could be a problem if it isn’t. Unfortunately, it is not uncommon to have cases where years have gone by and the QDROs have not been entered. It’s one of those things that can fall through the cracks once you’re divorced. You think everything has been done, but the division of these retirement accounts […]