Best Attorney in Client Satisfaction 2018 Super Lawyers
Call Today! (240) 357-3972 Pay Online

Firm News

What Is the Pension Benefit Guaranty Corporation?

Posted:

With the recent rash of announcements that big businesses are closing up shop – Kmart, Toys R Us, Gymboree, and more – questions are popping up about whether those who had an employer-backed pension plan are going to receive the benefits they worked hard to earn. One way that some employees have received their pensions, even if their employer no longer has the funds to support the pension program, is through the Pension Benefit Guaranty Corporation. What Is the Pension Benefit Guaranty Corporation? Pension Benefit Guaranty Corporation (PBGC) is a non-profit organization that guarantees continued payment of private-sector defined-benefit pension…

Read More »

Why You Shouldn’t DIY Your QDRO in a DIY Divorce

Posted:

Choosing to handle a divorce without an attorney is a route many more couples are taking. For couples that can agree on everything and are willing to put in the time, it’s a great option to help keep anger and costs lower. While there are forms for everything from initial divorce filings to final judgments available online or through your county’s courthouse, there are some portions of your DIY divorce that are best to let an experienced attorney handle. An important example of this is a QDRO, or Qualified Domestic Relations Order.   What Is a QDRO? A QDRO is…

Read More »

How Can an Alternate Payee Get Cash From a 401k Without Penalty?

Posted:

Internal Revenue Code 72(t) imposes the 10% penalty on early withdrawals (that is, withdrawals before the plan Participant has reached the age of 59 ½  ).  Sec. 72(t)(2) lists a number of exceptions for the imposition of the penalty. Sec. 72 (t)(2)( c ) says that the 10% penalty does not apply with respect to distributions to the Alternate Payee under QDRO as defined by Section 414(p)(1). The Alternate Payee may roll the whole distribution into another qualified plan or IRA, roll some/cash some, or take the whole distribution as cash. This is a one-time opportunity: once the funds are…

Read More »

That Didn’t Turn Out the Way I Expected…

Posted:

The Circuit Court has jurisdiction over most family matters.  But the Circuit Court judge doesn’t necessarily have the last word.  If you think the trial judge was wrong, you should consider an appeal.  Maryland Law provides two options for appeal. In Banc Review In an In Banc review, three circuit court judges sit as a panel and review the decision of the trial judge.  There are pros and cons to In Banc review.  On the plus side, the process is faster and less expensive than a formal appeal (see below).  The downside, however, is that you waive any right to…

Read More »

QDRO Top Ten List

Posted:

1. Know the real name of the plan. Does your client know what kind of retirement plan he or she participates in? It might surprise you to know that many people use the words “retirement” and “pension” interchangeably. Today however, more people have 401k plans as the basis of their retirement than traditional pensions. Even if they know what kind of retirement plan they have, most people don’t know its real name. What one party calls “my 401k” might actually be called “The X Company Savings Plan,” and “her pension” might be “The Y Company Retirement Security Plan.” Knowing the…

Read More »