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Practice Tip: Why Plan Administrators Reject QDROs
The administrator of a retirement benefit plan has the final say about the acceptability of a Qualified Domestic Relations Order (QDRO). Many parties (and some attorneys) think that if the judge orders certain terms, the plan must comply with that order. However, the plan cannot be made to provide any form of benefit that is not otherwise available under the terms of the plan itself, so conflicts can arise, leading to rejection.
If there are many reasons that proposed QDROs are rejected, what are a few of the more common ones, and how can they be avoided?
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