As defined by the IRS, a Qualified Domestic Relations Order (QDRO) is “a judgment, decree or order for a retirement plan to pay child support, alimony or marital property rights to a spouse, former spouse, child, or other dependent of a participant.”
While federal law generally protects retirement benefits from assignment and transfer to others, QDROs are a specific exception to this protection that could affect your Real Wealth in retirement.
Boeing Company 401(k) Retirement Plan
- Benefit Allocation: A QDRO can result in a portion of your Boeing 401(k) account being allocated to another person, such as an ex-spouse.
- Early Distribution Penalty: Payments made to an alternate payee pursuant to a QDRO are exempt from the 10% early distribution penalty tax that might otherwise apply to withdrawals before age 59½.
- Information: If the Plan Administrator receives a court order that seeks to affect your Boeing 401(k) benefits, you will be advised in writing. You can obtain more information and a copy of the 401(k)’s general procedures for QDROs by contacting the Fidelity QDRO Administration Group at 866-422-3539 or by visiting their website at qdro.fidelity.com.
Boeing Pension Plans (BCERP and PVP)
- Benefit Allocation: If your pension benefit under the BCERP or PVP is subject to a QDRO, a portion of your benefit could be paid to another person, such as an ex-spouse.
- Rollover Options: A former spouse who is entitled to benefits through a QDRO may be eligible to roll over certain eligible distributions from the pension plan to another employer’s qualified plan, or to an IRA or Roth IRA, provided the receiving plan or IRA accepts rollovers. If the alternate payee is a Designated Domestic Partner or a non-Spouse Beneficiary, they may only elect a direct rollover to an IRA.
Supplemental Savings Plan (SSP)
- Not Subject to QDROs: SSP is a nonqualified deferred compensation plan. Your SSP account is protected from assignment and transfers to others, including via QDROs.
Real Wealth Questions
Have you and your attorney reviewed how your QDRO affects your retirement benefits?
What steps should you take to ensure accurate implementation of the QDRO while also maintaining your standard of living in retirement?
Are any of your other assets subject to legal orders?
Questions? Visit the Boeing Benefits Glossary.