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socrateaser
socrateaser, Lawyer
Category: Family Law
Satisfied Customers: 39176
Experience:  Retired (mostly)
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How fast should you be able to get a lump sum payout from a Gvmt Thrift Savings Plan

Resolved Question:

I have a QRDRO in place and I want a lump sum payout but can't seem to get any answers re when it should be available. I've read previously that it can take up to sixty days but some people are telling me that it can take months. Which is true?
Submitted: 8 years ago.
Category: Family Law
Expert:  socrateaser replied 8 years ago.

QDROs are simply court orders that comply with federal law controlling retirement plans "qualified" by the Internal Revenue Service. Because a plan is a third party to a divorce, it has no obligation to comply with the family court order unless the order satisfies the exact specifications of federal law.

 

There is no "time" specified under federal law for distribution. It's entirely up to the plan. However, if it were apparent that the plan administrator were refusing to follow the court orders, you could cite the plan for contempt and force it to defend its position in court. You could also complain to the U.S. Dept. of Labor (www.dol.gov/esba), which controls ERISA qualified retirement plans.

 

And, you could also sue the plan "straight up," in civil court for breach of fiduciary. But, first, you would need to make a demand for payment, so it is unmistakable that you believe your money is being unreasonably withheld. You may want to start by writing the plan and asking for a copy of the plan agreement and a reference to the paragraph that controls payment timing.

 

No sense in complaining blind -- better to know what the plan's position is, in its administrator's opinion.

 

 

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Customer: replied 8 years ago.
That doesn't answer my question at all.
Expert:  socrateaser replied 8 years ago.

I beg to differ...it completely answers your question. You want to get paid. The only way to find out when that will be is to contact the plan administrator. Which is what I said.

 

If you think you're being treated unfairly by the plan, then you can sue or complain to the government. Those are your options. There are no others.

 

Please don't shoot the messenger, just because you don't like the answer.

 

 

Terms and Conditions: By your continuing in this conversation with me, or by your clicking "Accept", you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.