QDROs Can Cost More Now

In the past, divorcing spouses who wanted to transfer retirement plan money using a Qualified Domestic Relations Order (QDRO) faced the prospect of a significant attorney’s fee (typically $500-$1,000 for the QDRO for a defined contribution plan like a 401k plan and $1,000-$2,000 for a defined benefit plan like a pension). Now the Bush Administration (the Department of Labor and Internal Revenue Service) has added another cost. As a result of changes in interpretation of federal regulations, employers can now charge participants an allocated cost for processing a QDRO.

I’ve not heard anyone estimate what this fee would likely be. As soon as I have a general idea, I’ll post it here on the blog.

One thought on “QDROs Can Cost More Now”

  1. This is outrageous! I know my QDRO cost me (or actually my husband) about $1200. That’s enough. They shouldn’t let companies charge and drive up the cost even more.

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