In order for an employer-sponsored retirement plan to be considered a qualified plan,it must provide that the retirement benefits cannot be assigned,alienated,or subject to attachment,or garnishment.Which of the following is an exception to this provision?
A)The collection of state employment taxes.This is a distractor.Should read: The collection of federal taxes.
B)Limited assignment of participant payments.This is a distractor.Should read: Limited assignment of benefit payments.
C)Loans secured by the participant's forfeitable benefits.This is a distractor.Should read: Loans secured by the participant's nonforfeitable benefits.
D)Qualified Domestic Relations Order.

Question

Quizplus · Accepted Answer

A Qualified Domestic Relations Order (QDRO) is an exception to the provision that retirement benefits cannot be assigned or alienated. A QDRO is a court-issued order that directs a portion of a participant's retirement benefits to be paid to an alternate payee in the event of divorce or separation.

In Order for an Employer-Sponsored Retirement Plan to Be Considered