What is defined contribution plan

what is defined contribution plan

Defined Contribution - 401(k) Plan A 401(k) plan is a retirement plan whereby the employer, employee or both make contributions into an individual account established on behalf of the employee. Such funds can be invested, and upon retirement, the employee receives either a lump sum payment of the amount held in the account or such balance is converted to a monthly annuity payable for the lifetime of the employee. Because the contributions are defined or "known" it is considered to be a defined contribution pension plan.

General Questions to be Answered:
  1. Name, address and phone number of the person requesting the order.
  2. Name of the county in which the divorce is taking place.
  3. Name of the court that has jurisdiction over the divorce.
  4. Name of judicial district/circuit/division, if applicable.
  5. Case reference number.
  6. Name, address, date of birth and Social Security number of the employee (participant/member of the plan).
  7. Name, address, date of birth and Social Security number of the employee’s spouse (alternate payee/former spouse).
  8. Reason for order (marital property rights or alimony).
  9. Date of marriage.
  10. Date the marriage ended.
  11. Date of divorce, if divorced.
  12. Date the employee began participating in the plan, if prior to the date of marriage.
  13. Is the employee still employed, terminated or retired?
  14. The exact name of the pension plan.
Additional Questions to be Answered:
    (Explanations are included with these questions)
  1. What is the form of award to the alternate payee (percent, dollar amount, percent plus dollar amount, percent less dollar amount, percent after a dollar

    amount is deducted)?

  2. Should the alternate payee receive gains/losses on his/her share of the benefits from the date of division to the date of segregation?
  3. In the event the Participant has an outstanding loan balance as of the Date of Division, should the loan balance be "Excluded" or "Included" in determining the Alternate Payee’s assigned share of the benefits?
Additional Provisions that will be included in the QDRO:
  1. Alternate Payee’s share will be determined from Participant’s Total Account Balance.
  2. Contributions to the Participant’s account(s) after the Marriage End Date that are attributable to periods before the Marriage End Date shall be included.
  3. Alternate Payee’s assigned share shall be allocated on a "pro-rata" basis among all Participant’s accounts.
  4. What happens if the Participant is not 100% vested.
  5. Establishment of New Account for the Alternate Payee.
  6. Commencement Date and Form of Payment to Alternate Payee.
  7. Alternate Payee’s Rights and Privileges under the Plan.
  8. What happens upon the Death of Alternate Payee.
  9. What happens upon the Death of Participant.
  10. Who is responsible for Order Review Fees.
  11. Savings Clause.
  12. Certification of Necessary Information.
  13. Continued Qualified Status of Order.
  14. Tax Treatment of Distributions Made Under The Order.
  15. What happens if the Plan make Inadvertent Payments to the Alternate Payee or Participant.
  16. Continued Jurisdiction by the Court.
  17. Effect of Plan Termination.
  18. Continued Jurisdiction.
  19. Actions or Inactions by the Participant.
  20. Correcting, Suspending or Terminating Payments to the Alternate Payee or Participant.
  21. Plan terms shall prevail in case of a conflict.

Source: www.qdrodesk.com

Category: Bank

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