What is the "Evaluation Date" Used for QDRO Purposes?
Posted on May 10, 2016 1:14pm PDT
Jamie, from Bethesda, MD, asks, "What is the "Evaluation Date" that is used in the QDRO's?"
Spencer Olsen from Pension Evaluators® at Troyan Inc.®, answers, "The valuation date for QDRO purposes is the date as of which the
funds that are the retirement benefits are to be divided. For example,
in a QDRO for a 401(k) plan awarding 50% to the non-employee spouse with
a valuation date of September 30, 2011, the plan will lok at the Participant's
account balance on September 30, 2011 and multiply the account by 50%
to detemine the former spouse's share. The plan administrator will
not look at the current account balance at the time of actual division
of the account, but will look at the account balance as of the evaluation
date. Therefore, such must clearly be defind in the QDRO.
DISCLAIMER: Any legal information on this blog has been prepared by Troyan from informational purposes only and should not be construed as legal advice. The material posted on this website is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Note that sending an e-mail to Troyan does not create an attorney-client relationship, and none will be formed unless there is an agreement between the firm and the individual.