When people hear QDRO they think of divorce. But to the surprise of many there is no statutory requirement that a married couple divorce each other in order to transfer ERISA plan assets (usually a 401(k)) from one spouse to the other. The words “divorce” and “separation” do not even appear in ERISA.
I am one of the few attorneys in the country and the only one in Nebraska who can work this legal magic. And magic it can be as one married couple in the South was able to protect over $23,000 per year from the nursing home.
I spent over 100 hours researching and writing to adapt the In-Marriage QDRO to Nebraska law after I learned of it in February 2018.
Right now the most popular use of this innovative legal strategy is transferring 401(k) money from the older spouse to an IRA of the younger spouse in order to defer RMD’s. There are, however, about ten applications for the Happily Married Couple QDRO with the purchase of an annuity or another debt-based financial product with 401(k) equity money being popular also.
I have a thirty minute Power Point presentation for financial advisors or potential clients and I will be happy to show it to you.