Elder Care Lawyers in NJ

In short, qualified pension plans are the most common type of retirement plan and are given more preferential treatment in the tax code. Non-qualified plans, on the other hand, have much less stringent requirements and consequently less favorable tax treatment. In contrast to qualified plans, which must be available company-wide, the less popular, non-qualified plans are more typically used as compensation for executives. When going through the division of assets in a divorce, non-qualified pension plans are typically easier and simpler to divide at the time of the divorce proceedings . Non-Qualified Pensions Non-qualified plans, on the other hand, do not meet the ERISA requirements. For this reason, non-qualified funds offer more flexibility for employers but also limit the tax benefits. Here is a list of popular non-qualified funds : ●        Certificates of Deposits ●        Annuities ●    ...

When Should I Get a Qualified Domestic Relations Order? The emotional and financial trauma that comes with a divorce is difficult enough for a couple. During the divorce, it is relatively simple to divide tangible assets like homes or vehicles. However, the equitable division of a retirement plan or a pension plan is more difficult. While many individuals assume their divorce settlement agreement will fully protect their rights to the portion of their former spouse’s retirement fund that was contributed to during their marriage, this is not always the case. One way to ensure that your retirement funds are equitably distributed is through a Qualified Domestic Relations Order (QDRO). What is a Qualified Domestic Relations Order? A Qualified Domestic Relations Order is a court order that divides the benefits of a retirement plan between two former spouses and is then accepted by the administrator of the retirement plan. A QDRO generally contains specific directions for how a re...