QDRO Rollover?
Can the Alt. Payee roll a 401k/403b QDRO over to an IRA an still maintain the exception for under 59.5 pentalty or does it have to stay in the “Plan” in order to avoid penalty?
Thanks in advance
Can the Alt. Payee roll a 401k/403b QDRO over to an IRA an still maintain the exception for under 59.5 pentalty or does it have to stay in the “Plan” in order to avoid penalty?
Thanks in advance
Permalink Submitted by mk foss on Mon, 2011-04-25 17:29
Once QDRO benefits are rolled to an IRA, they are subject to the 10% penalty for early distribution. Keeping them with the former spouse’s plan protects the funds from the penalty.