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dissipating the benefits before they reach the alternate payees.
To accept as a QDRO a DRO that allows the plan administrator to
shift the payment responsibility to the plan participant would
violate the purpose of section 414(p).
Even if the Order qualified as a QDRO on its face, we find
that the exception in section 402(e)(2) does not apply because
the procedural requirements of section 414(p)(6) were not
satisfied. Section 414(p)(6) provides the procedures for
determining whether a DRO meets the standards of a QDRO, and it
states that “the plan administrator shall promptly notify the
participant and each alternate payee of the receipt of such order
and the plan’s procedures for determining the qualified status of
domestic relations orders,” and “within a reasonable period after
receipt of such order, the plan administrator shall determine
whether such order is a qualified domestic relations order and
notify the participant and each alternate payee of such
determination.”
This Court has consistently held this subsection to mean
that to qualify as a QDRO, a DRO must “be presented to the plan
administrator and adjudged ‘qualified’ before any distribution is
made by the plan to the spouse or former spouse.” Karem v.
Commissioner, 100 T.C. at 526; see also Rodoni v. Commissioner,
105 T.C. at 35. This reduces any ambiguity as to whether a
distribution is made pursuant to a QDRO.
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Last modified: March 27, 2008