Which statement about QDROs (Qualified Domestic Relations Orders) is FALSE?

A Qualified Domestic Relations Order (QDRO) is a legal order that recognizes the right of an alternate payee, such as a former spouse, to receive a portion of the benefits from a retirement plan. Understanding the intricacies of QDROs is essential for accurately navigating family law and retirement benefits.

The statement indicating that a QDRO may require benefits that the plan does not provide is false because a QDRO can only allocate benefits that are actually available within the retirement plan. Retirement plans are bound by the terms of their governing documents and cannot be compelled to provide benefits outside of what has been established. Therefore, if a QDRO requests benefits that the plan does not offer, it would not be valid or enforceable.

In contrast, the plan administrator’s responsibility in the QDRO process is crucial since they must ensure that the order complies with the retirement plan's requirements and federal law. Additionally, plan administrators are required to evaluate and respond to QDROs within a reasonable timeframe, as prompt action is important for managing both the plan’s obligations and the rights of the alternate payee. Finally, a well-crafted QDRO must explicitly detail the benefits it affects, aligning with regulatory and administrative requirements, which further supports the