Courts address the interrelationship of divorce and post-divorce decrees and retirement plan provisions

Article Abstract:

Two federal courts have recently considered the effect of nonqualified post-divorce domestic relations orders on retirement plan distributions. In Hopkins v. AT & T Global Information Solutions Co., the US District Court for the Southern District of West Virginia found that a family court could not order benefits to be transferred to the ex-wife because the rights of the current wife had already vested. In Altobelli v. IBM Corp., the US Court of Appeals for the Fourth Circuit found that a nonparticipant beneficiary could waive benefits in a nonqualifying domestic relations order.

Cases, Beneficiaries, Divorce settlements

---

ERISA's anti-alienation rule does not prohibit the IRS from garnishing taxpayer's interest in ERISA plan

Article Abstract:

The US Court of Appeals for the Sixth Circuit ruled in United States v. Sawaf that garnishment of taxpayers interest in a qualified benefit plan by the IRS for an unpaid tax liability was not barred by section 206(d) of the Employee Retirement Income Security Act. The taxpayers argued that such attachment would violate anti-alienation provisions that rendered qualified plan interests exempt. The court distinguished the present case from other cases that had protected the pensions based on the fact that private creditors were involved in the other cases.

Tax liens, Attachment and garnishment

---

Similar abstracts:

• Abstracts: IRS approves changes in asset valuation method and software for defined benefit plans. PBGC proposes changes in plan benefit valuation rules for single-employer and multiemployer plans after mass withdrawal
• Abstracts: The Supreme Court and international law: the demise of Restatement section 403. The President's constitutional authority to use limited military force
• Abstracts: Dividing a closely held corporation when a couple divorce. New disclaimer regs. and other rules affecting jointly owned property
• Abstracts: Study forecasts broad future for financial planning. Tax advantaged retirement planning: selling life insurance in the Roth IRA market
• Abstracts: Circuit courts are split on whether discrimination claims can be compelled to arbitration when collective bargaining agreements include arbitration clauses

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.