Q: How is the Majauskas formula applied to divide a 401k through a QDRObefore retirement age?
I would like to divide my 401k and give my ex her portion asap. We are in our 50s and live in NY. The divorce decree states" the Wife shall be entitled to a Majauskas share of the husbands 401-k as of the date of commencement of the matrimonial action that was pending at the time such agreement was executed, to wit July 16 2018. The wife shall obtain her share of the same by means of a Qualified Domestic Relations Order
Assumptions Marriage lasted 30yrs
The 401k started in 1/2015
As of 7/16/18 the balance of the 401-k is $100,000
Questions
Can I initiate this instead of her?
Can this be completed now before retirement age? (initiate & complete QDRO, divide 401-k, give her her portion)
Is there any advantage to wait vs. get this done now (it was a contentious divorce, we are no contact, the grapevine says she needs money now, and I'm seeking closure) I have no issue paying the QDRO fee.
Approximately how much is she entitled to (roughly based on the application of the formula)?
A:
The Majauskas formula is 50% × years of service credit accrued during marriage (numerator)÷ total service credit at time of retirement (denominator). As we are not told the date of marriage (presented by way of an assumption of 30 years), the asker can do his own math.
Causing money from any pension account to pass without a QDRO will cause penalties to the asker and an income tax to the spouse. Preparing a QDRO can be done upon divorce. There should be no delay, but we do not have enough facts as the contents of a divorce agreement and/or judgment to opine on that part of the asker's question.
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