QDRO Beneficiaries

Submitted by Josh Harmon on Mon, 2024-02-26 17:16

Clients just legally separated and executed a QDRO on the husband’s ESOP. The wife was planning on making him the beneficiary on her new QDRO ESOP (he still works at the company). They’re wondering if this brings up any red flags. My assumption is no, but thought I would check.

Thanks!



Submitted by Alan - IRA critic on Mon, 2024-02-26 17:23

That’s OK unless she divorces and remarries, after which she would need the new spouse to sign a waiver. She should also be aware of possible inability to use the ESOP funds for NUA under a QDRO, and that RMDs start based on the husband’s RBD. 



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