calculating investment earnings and/or losses

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ntang
Posts: 31
Joined: Fri Mar 02, 2018 12:01 am

calculating investment earnings and/or losses

Post by ntang » Fri Mar 02, 2018 12:35 am

How are interest and investment earnings/losses calculated on the alternate payee's share of the benefits?

lduffy
Posts: 29
Joined: Thu Mar 01, 2018 10:15 pm

Re: calculating investment earnings and/or losses

Post by lduffy » Fri Mar 02, 2018 1:46 am

Retroactive calculation of growth on the alternate payee's share of the account balance from the effective date of division based on your state’s marital property law to the date the plan segregates the account are generally calculated by the plans based on the annual interest and investment growth factors which will be applied with partial year adjustments for the first and final year of the calculation.

There is also growth from date of account segregation of alternate payee’s interest to the date of distribution. If the alternate payee does not elect immediate distribution of alternate payee’s share of the benefits upon approval of the QDRO, benefits will be segregated and maintained in separate account(s) in the name of the alternate payee. Once new accounts are established, the alternate payee's share of the benefits will grow with interest and investment earnings and/or losses in the same manner as the participant's benefits under such accounts.

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