This form is only for employees who are participants in the Original Benefit Structure or who have a cash balance account.
#Qdro in tennessee appily to government workers pdf
Please complete form RS-2 to change your beneficiaries for the TVARS death-in-service benefit, if eligible.īeneficiary Designation for Death-In-Service Benefit (RS-2) PDF All beneficiary designations with Fidelity are for your 401(k) Plan ONLY. Simply log on to NetBenefits at and click Profile, then Beneficiaries. Formįidelity Investments handles beneficiary designations for the 401(k) Plan. You may also want to contact the People First Solution Center at 88 about changing your beneficiary for benefits such as Optional Life Insurance and Accidental Death & Dismemberment Insurance. You may need to change beneficiaries after marriage, divorce, death of current beneficiary, birth of a child, or children becoming financially independent. Please see the healthcare benefits webpage for more information. If eligible, you will also need to submit medical and dental insurance applications. ĭescription of rollover rules related to any eligible distribution from TVARSīenefits Summary for Terminating Employees PDFįor information on applying for retiree medical and dental insurance, see the Benefits Summary for Terminating Employees or contact the People First Solution Center.Īpplications MUST be received within 30 days after termination. Note: There are two forms: one for employees hired before and one for employees hired on or after and before. Īpplication MUST be received within 60 days after termination.Īpplication for a lump-sum distribution of your retirement benefit(s).Īpplication for deferred retirement benefits with payments to begin at a later date.
Note: There are two forms: one for employees hired before and one for employees hired on or after and before. Working with an attorney in Tennessee who is experienced with these orders is always recommended to help prevent tax issues down the road.Employee Forms Retirement Applications FormĪpplication for Immediate Monthly BenefitĪpplication for immediate retirement benefits. There are many fine details involved in properly establishing a qualified domestic relations order. Again, the QDRO would need to detail the exact amount of payments to be made and the recipient could elect to reinvest the money into another type of retirement plan. If the person who owns the account chooses to tap into 401K funds to pay alimony, the spouse who receives the money will be responsible for taxes. If a person chooses to use a QDRO to make child support payments with retirement funds, the account owner will retain income tax responsibility. In addition to outlining provisions for a property division settlement, a qualified domestic relations order may allow the use of 401K funds to satisfy either a child support or a spousal support award.
If that person makes the choice to invest the money into another retirement fund, the taxes may be avoided altogether. The plan participant is therefore not taxed nor assessed any fees.Īccording to the Internal Revenue Service, the spouse who receives the money would be responsible for reporting the income on a tax return. This then allows them to receive distributions directly as per the QDRO and divorce decree. With a QDRO, the spouse who does not own the account can be named as an alternate payee on the account. This is essentially a way for people to maximize the amount of money they preserve from their hard-earned savings. The use of a qualified domestic relations order may help people prevent both of these things. Department of Labor explains that when a person withdraws money from a 401K account for any non-retirement purpose, both taxes and early withdrawal penalties may apply. It is also wise to learn about the ways to potentially avoid being hit with a large tax bill. Before proceeding, people should understand what is involved in this split in order for them to assess what is in their best interest. However, as with other elements of a property division agreement, there may be tax implications of splitting a 401K account. This has become a relatively common part of many property division settlements today, especially as a retirement account may be one of a couple’s most valuable assets. When getting a divorce, many people in Tennessee end up having to split their 401K account assets with their spouse. Divorcing Tennessee spouses who must split 401K retirement accounts should learn about the qualified domestic relations order.
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