When it comes to QDRO, your plan administrator has the final say. Most individuals believe that the plan administrator is subjected to a court order, but that is far from the truth. The job of a plan administrator is to provide benefits stipulated under the terms of the plan, and anything contrary to that is not welcomed.

There are numerous reasons proposed QDRO can be rejected, and here are a few:

1. Wrong plan name

Most often, the parties involved do not know the correct name of the plan to be divided. As usual, it always affects their claims to the benefits. This scenario is common, especially since companies can be bought and sold, thereby changing their names.

To avoid your QDRO order being rejected, ensuring that the name is correct and the complete legal name will play in your best interest.

2. Decrease or increase in defined contribution

When it comes to the lapse between the date of value and distribution, it is important for the plan to address the provision of increases or decreases in the amount of money going to the alternate payee. Failure to address these changes can lead to denials by the plan administrator.

3. Death of plan participant

If you fail to file for a QDRO before the death of the plan participant, your QDRO will be rejected. It is advisable to file for a QDRO as soon as your divorce is finalized to avoid falling into such an ugly rut.

4. Combining a percentage and a dollar amount

In a case where the language used is not clear, it can become an issue and might lead to your order being denied. For instance, if the plan had stated that the alternate payee will receive 40% of the account balance less $7000, it becomes unclear whether $7000 gets subtracted first, then 40% taken, or perhaps 40% taken, then $7000 subtracted. Such confusion can lead to denial.

5. QDRO for the wrong type of plan

There are distinctions between a defined benefit plan and a defined contribution plan, and mistaking the former for the latter will lead to your order being rejected by the plan administrator.

Avoiding Rejection

The best way to avoid your QDRO order from being rejected is to work with a QDRO attorney who knows the ins and outs of QDRO. Although the process can be daunting, your attorney will ensure you don’t make mistakes that could harm your claim.

The fact is, this is probably your first time filing a QDRO order, and you’re prone to mistakes. But… you don’t need to worry about rejection when you work with an experienced QDRO attorney. Go ahead and give us a call 718-785-8017, or perhaps fill our contact form to begin. No pressure!