A qualified domestic relations order (QDRO) is a court order used to divide retirement assets in employer-sponsored plans such as401(k)s,403(b)s, or traditional pension plans. A QDRO must comply with the Employee Retirement Income Security Act (ERISA), which governs these types of plans. I...
Obviously, my calculation is simplistic because we all die at some point. My calculation is based on cash flow into perpetuity. To counteract the perpetuity, I assign a Probability of Payout percent. Further, we all won't have surviving spouses to continue receiving the pension long after we'...
The amount of the lump sum pension is typically calculated based on various factors, including the retiree’s years of service, salary history, and the pension plan’s formula. The lump sum amount may also include additional contributions from the retiree, such as voluntary contributions or employ...
a federal law governing certain “qualified” retirement accounts. Qualified plans include a 401(k), 403(b), and many pension plans. In order to divide the qualified plan, a Qualified Domestic Relations Order (QDRO) or (EDRO) must be submitted with the divorce decree. ...