FOR PLAN ADMINISTRATORS

Transcription

1 QDRO INFORMATIONAL KIT FOR PLAN ADMINISTRATORS T ensure cmpliance with requirements impsed by the IRS, we infrm yu that any infrmatin cntained in this cmmunicatin (including any attachments) was nt intended r written t be used, and cannt be used, fr the purpse f (i) aviding penalties under the Internal Revenue Cde r (ii) prmting, marketing r recmmending t anther party any transactin r matter addressed herein. As with all matters f a tax r legal nature, yu shuld cnsult yur wn tax r legal cunsel fr advice INS & MF

2 TABLE OF CONTENTS QDRO INFORMATIONAL KIT INTRODUCTION...3 QDRO TOOLS...4 Overview f Qualified Dmestic Relatins Orders and Plan Administratr Respnsibilities...6 Definitins:...6 QDRO Requirements:...6 Establishing QDRO Prcedures:...7 Receipt f Order Ntificatin...7 QDRO Determinatin...7 Order Status Ntificatin...7 Assignment / Distributin...8 QDRO Prcessing Instructins...9 A. Immediate Payment...9 B. Deferred...9 C. Imprtant Ntes:...10 MassMutual QDRO Cntacts

3 QDRO INFORMATIONAL KIT INTRODUCTION As Plan Administratr, it is yur respnsibility t determine whether a dmestic relatins rder ( Order ) cnstitutes a qualified dmestic relatins rder ("QDRO") under the requirements f Internal Revenue Cde ("IRC") 414(p) and Emplyee Retirement Incme Security Act ( ERISA ) 206(d). This QDRO Infrmatinal Kit fr Plan Administratrs ("QDRO Kit") includes infrmatinal materials, a basic checklist, a sample plan prcedure, and ntificatin letters t assist yu with these respnsibilities. These dcuments shuld be reviewed with yur legal r tax advisr and, if necessary, mdified as applicable fr yur Plan prir t use. The QDRO Kit als directs yu t the administrative frms yu will need t submit t MassMutual t assign and distribute Plan benefits t an alternate payee. The QDRO Kit may be accessed via ur website. Please refer t MassMutual QDRO Cntacts sheet at the back f the QDRO Kit fr lg-n and administrative frm submissin instructins. Nte: MassMutual is a directed service prvider (e.g., recrdkeeper) and nt the Plan Administratr r fiduciary, and as such cannt qualify an Order. We d nt prvide legal r tax advice nr d we prvide cnsultatin services with respect t qualifying an Order. The infrmatin cntained in this QDRO Kit is general and des nt encmpass all f the QDRO rules under ERISA r the Internal Revenue Cde and its regulatins. We suggest yu cnsult with yur legal r tax advisr if yu have any specific questins regarding the determinatin and payment f a QDRO. At yur request MassMutual will: Prvide participant statements r ther Plan dcuments, if nt n ur website Assist yu in determining the participant s accunt balance as f the Order s valuatin date, if we were the recrdkeeper n that date Prcess the QDRO Prcessing Frm (if in gd rder): Part 1 - QDRO Assignment Authrizatin Part 1 is cmpleted by yu and pertains t the creatin f the alternate payee s accunt and the transfer f their QDRO assignment frm the participant s accunt int the alternate payee s accunt. Part 2 - QDRO Payment Request Part 2 is cmpleted by the alternate payee when he r she requests a distributin f their accunt. Yu are generally respnsible fr the fllwing: Determining whether an Order is qualified under the IRC and ERISA Prviding the Plan s QDRO prcedure and written ntificatins t the participant and alternate payee(s) Determining the alternate payee s assignment under the Order Determining earnings/lsses n the alternate payee s assignment, if applicable: MassMutual Bundled Services We will calculate earnings/lsses if requested in Sectin D f Part I f the QDRO Prcessing Frm. Nte: MassMutual may assess a fee fr QDRO calculatins. Third Party Administratr (TPA) Services Cntact yur TPA t calculate earnings/lsses, t be apprved by yu. Prviding MassMutual with QDRO related recrdkeeping instructins (e.g., participant accunt transfer, alternate payee distributin) 3

4 QDRO TOOLS MassMutual has created varius tls t assist yu in determining if an Order is a QDRO, as listed belw. These tls may be accessed via ur website. Please refer t MassMutual QDRO Cntacts sheet at the back f the QDRO Kit fr lgn and administrative frm submissin instructins. Overview f Qualified Dmestic Relatins Orders and Plan Spnsr Respnsibilities: A high-level descriptin f a QDRO, including the general qualificatin rules, and the QDRO prcess with MassMutual (lcated in this QDRO Kit). Nte: The sample dcuments we prvide shuld be reviewed with yur legal r tax advisr and, if necessary, mdified as applicable fr yur Plan prir t use. Sample QDRO Checklist: A basic step-by-step checklist and assignment amunt wrksheet yu may wish t use t assist yu in determining whether an Order meets the qualificatin rules f the IRC and ERISA. This is lcated n ur website. Sample Prcedures Related t Determining The Status f a Dmestic Relatins Order: Upn receipt f an Order, the QDRO rules require yu t prvide the participant and alternate payee(s) with a cpy f the Plan s Order qualificatin prcedures. This is a sample prcedure yu may use in develping yur Plan s prcedures. This is lcated n ur website. Sample Participant and Alternate Payee(s) Letters: The QDRO rules require the participant and alternate payee(s) t be ntified when an Order is received fr review by yu and again upn yur determinatin as t whether the Order meets the qualificatin requirements f the IRC and ERISA. We have created sample letters yu may find useful in develping yur Plan s ntificatin letters. Letters 5, 6 and 7 are required cmmunicatins. The remaining letters may be used as applicable within the curse f yur review. A descriptin f each sample letter and their ptential use is described belw: Letter #1 - Draft Dmestic Relatins Order Under Review Acknwledges the receipt f the draft Order and that it is under review and a hld has been placed n the participant s accunt if required by the Plan s QDRO prcedure. Letter #2 Draft Dmestic Relatins Order Des Nt Meet Qualificatin Requirements Ntifies the applicable parties that the draft Order des nt meet the qualificatin requirements. Letter #3 Draft Dmestic Relatins Order Meets Qualificatin Requirements Ntifies the applicable parties that the draft Order meets the qualificatin requirements. Letter #4 Dmestic Relatins Order - Inquiry Upn an inquiry abut a ptential Order, ntifies that a hld has been placed n the participant s accunt if required by the Plan s QDRO prcedure. Generally, if the inquiry is in regards t the value f the participant s vested accunt balance it shuld be apprved by the participant unless the inquiry is frm the participant r the Plan receives a subpena r jiner. Letter #5 - Receipt f Dmestic Relatins Order (required by law) Acknwledges t the altermate payee and participant the receipt f the Order, that it is under review and a hld has been placed n the participant s accunt if required by the Plan s QDRO prcedure. Letter #6 - Dmestic Relatins Order Determined Nt T Be Qualified (required by law) Ntifies the alternate payee and participant that the Order des nt meet the qualificatin requirements. Letter #7 - Dmestic Relatins Order Determined t Be Qualified (required by law) Ntifies the alternate payee and participant that the Order meets the qualificatin requirements. Letter #8 - Dmestic Relatins Order N Activity Ntifies the alternate payee that the Order submitted t the Plan was nt qualified and that the end f the 18-mnth qualificatin perid is appraching. Letter #9 - Dmestic Relatins Order File Clsure Ntifies the alternate payee that the Order submitted t the Plan was nt qualified, that the 18-mnth qualificatin perid has ended and the Order s file is clsed. 4

5 QDRO Participant Accunt Hld Request Frm: When yu receive an Order, if required by the Plan s QDRO prcedure, prvide MassMutual with a QDRO Participant Accunt Hld Request frm t place a hld n the participant s accunt. If yu determine the Order des nt meet the QDRO rules, if applicable, submit anther frm by the end f the 18-mnth QDRO determinatin perid t reactivate the participant s accunt. QDRO Prcessing Frm: Once yu qualify the Order, prvide MassMutual with this frm t prcess the QDRO s prvisins: Assignment Cmplete QDRO Prcessing Frm, Part 1 - QDRO Assignment Authrizatin t prvide MassMutual with instructins t transfer the QDRO assignment frm the participant s accunt int the alternate payee s accunt. Distributin If the alternate payee requests an immediate distributin (r if their accunt is less than r equal t the Plan s small accunt cash-ut limit), prvide them with QDRO Prcessing Frm, Part 2 - QDRO Payment Request. Submit the cmpleted and signed frm alng with Part 1 - QDRO Assignment Authrizatin frm t MassMutual. If the alternate payee decides t defer distributin, please prvide them with QDRO Prcessing Frm, Part 2 - QDRO Payment Request upn their request f a distributin. Submit the cmpleted and signed frm t MassMutual. 5

6 Overview f Qualified Dmestic Relatins Orders and Plan Administratr Respnsibilities Definitins: A Dmestic Relatins Order ( Order") is a judgment, decree r rder (including apprval f a prperty settlement agreement) that is made pursuant t a state's cmmunity prperty r ther dmestic relatins law. The Order relates t the prvisins f child supprt, alimny payments and/r marital prperty rights fr the benefit f a spuse, frmer spuse, child r ther dependent. Additinally, a child supprt incme withhlding ntice issued by a state agency, pursuant t 466(a) f the Scial Security Act (i.e., State Child Supprt Enfrcement (CSE) IV-D prgram) is an Order. A state authrity, ften a curt but smetimes a state agency r instrumentality with the authrity t issue judgments, decrees, r rders, must actually issue a judgment, rder, r decree r therwise frmally apprve a prperty settlement agreement befre it is cnsidered an Order under ERISA. The mere fact that a prperty settlement is agreed t and signed by the parties will nt, in and f itself, cause the agreement t be an Order. Mrever, retirement plans are neither permitted nr required t fllw the terms f an Order that assigns plan benefits unless it is determined t be a Qualified Dmestic Relatins Order. A Qualified Dmestic Relatins Order ( QDRO") is an Order which meets the qualificatin requirements f IRC 414(p) and ERISA 206(d)(3) as determined by the Plan Administratr. A QDRO creates r recgnizes the existence f an alternate payee s right t receive, r assigns t an alternate payee the right t receive, all r a prtin f the participant s vested accunt under a retirement plan. Only in instances where an Order has been determined by the Plan Administratr t be a QDRO will a participant's accunt under the Plan be affected. Plan Administratr is the Emplyer spnsring the Plan, r the persn r entity appinted by the Emplyer t administer the Plan n behalf f the Emplyer. MassMutual is a directed service prvider (e.g., recrdkeeper) and des nt serve as a Plan Administratr. Alternate Payee, as defined in IRC 414(p)(8), is any persn wh is the spuse, frmer spuse, child, r ther dependent f a participant and wh is named in a Order as having a right t receive all r a prtin f the participant s vested accunt payable under the Plan. An alternate payee may nt be an entity r persn ther than a spuse, frmer spuse, child r ther dependent f the participant. Participant is an emplyee r frmer emplyee f the Emplyer, r any affiliate theref, wh has becme a participant in the Plan and wh has an accunt under the Plan. QDRO Requirements: IRC 414(p) and ERISA 206(d) prescribe certain requirements with respect t a Plan Administratr's qualificatin f an Order. Yu shuld cnsult with their legal r tax advisr regarding questins abut the Order, the qualificatin rules f the IRC and ERISA, and the effect f the Order n the Plan. Nte: Yu are respnsible fr determining if an Order is qualified. MassMutual cannt determine whether an Order is a valid QDRO. MassMutual will transfer assets frm the participant s accunt int the alternate payee s accunt in accrdance with yur written instructins. MassMutual will distribute the alternate payee s accunt in accrdance with the alternate payee s distributin instructins, which has been apprved by yu. Fr mre in-depth infrmatin abut QDROs, please visit the Department f Labr's Emplyee Benefits Security Administratin s ("EBSA") website. Sme f the resurces n EBSA's website are listed belw. As Plan Administratr, yu are urged t familiarize yurself with these materials and speak with yur legal r tax advisr t learn mre abut QDRO review and ntificatin requirements. - Main Web page fr emplyee benefits - Publicatin which prvides general infrmatin n QDROs - Frequently asked questins abut QDROs - Frequently asked questins abut determining the Order s qualificatin status and paying benefits - Frequently asked questins n drafting an Order 6

7 Establishing QDRO Prcedures: The QDRO rules require a retirement plan t have written QDRO prcedures. MassMutual prvides a sample prcedure, Prcedures Related t Determining the Status f a Dmestic Relatins Order, as well as sample participant and alternate payee ntificatin letters, and ther tls which yu may find helpful in develping yur Order qualificatin prcess. Yu shuld review these materials with yur legal r tax advisr and make any changes as apprpriate fr yur Plan prir t their use. In general, certain requirements shuld be described in the Plan s QDRO prcedures. Sme f these requirements are: Receipt f Order Ntificatin Upn the receipt f an Order, yu must ntify the alternate payee(s) and participant in writing that the Plan has received the Order and prvide each individual with a cpy f the Plan s QDRO prcedure. (We prvide a sample letter #5 and sample QDRO prcedure yu may use fr this purpse). QDRO Determinatin Cnsistent with the Plan s QDRO prcedures and the law, yu must determine whether the Order is a QDRO within a reasnable time. The determinatin perid is as sn as administratively pssible but nt mre than 18 mnths. The QDRO prcedure may direct yu t: 1) Fr Participant Accunts Nt in a Pay Status Place a hld n the participant s accunt t ensure that n distributins r lans are taken frm their accunt that might be assignable t the alternate payee. 2) Fr Participant Accunts in a Pay Status (e.g., receiving installment payments) Place a hld n the participant s accunt as described abve. If the Order r QDRO prcedure requires a different methd t prtect the alternate payee s ptential assignment (e.g., segregatin), please cntact yur Accunt Manager. If required by the Plan s QDRO prcedure, cmplete a QDRO Participant Accunt Hld Request frm and submit it t MassMutual t authrize a hld t be placed n the participant s accunt. Please refer t MassMutual QDRO Cntacts sheet at the back f the QDRO Kit fr submissin instructins. Yu may want t prvide a cpy f the frm t the participant, if applicable. Nte: If yu decide t use the sample QDRO prcedure prvided by us, we suggest that yu discuss with yur legal r tax advisr whether the sample prcedure s hld methd is a reasnable methd t prtect the alternate payee s ptential assignment during the determinatin perid. If yu decide t use a different methd, yu will need t revise the sample QDRO prcedure accrdingly. Fr example, if the participant s accunt is in a pay status and the Order requires the accunt t be segregated. Additinally, if applicable, the hld placed n the participant s accunt will remain in place fr n lnger than 18 mnths frm the date the Plan receives the Order. Generally, the hld will be lifted n the participant s accunt n the earlier f: (1) the date the valid Order is qualified and the Alternate Payee s assignment is transferred int his/her accunt, (2) the date the plan administratr is ntified in writing that the parties n lnger intend t pursue a qualified dmestic relatins rder ( QDRO ), (3) the Plan receives a curt executed rder t vacate the Order r indicating the Participant s accunt will nt be divided, r (4) the end f the 18-mnth perid. Please cmplete anther QDRO Participant Accunt Hld Request frm and submit it t MassMutual t reactivate the participant s accunt (e.g., lift the hld). The Participant must request r restart any suspended withdrawal transactins and, if applicable, participant plan lans affected by the hld placed n his/her accunt. Nte: The sample QDRO prcedure indicates that the hld will be lifted after the 18-mnth determinatin perid has elapsed and the alternate payee has made n cntact, and prvided n written respnse within 60 days f the fllw-up crrespndence. (We prvide a sample letters #8 and #9 yur may use fr this purpse.) If yu decide t use the sample QDRO prcedure, yu shuld discuss with yur legal r tax advisr whether the 60-day perid is reasnable and make any changes as apprpriate fr yur Plan prir t use. Order Status Ntificatin Upn cmpletin f the Order s review, yu must ntify the alternate payee(s) and participant in writing whether the Order is determined t be a valid QDRO. (We prvide a sample letter #7 fr this purpse.) Additinally, if the Order is determined nt t be a QDRO, yu must als prvide the reasn(s) fr the adverse decisin. (We prvide a sample letter #6 fr this purpse.) 7

8 Assignment / Distributin Once yu qualify the Order, yu must begin t execute the varius prvisins f the QDRO. Fr example, the QDRO may require that an accunt be established fr the alternate payee. Assignment Cmplete QDRO Prcessing Frm, Part 1 - QDRO Assignment Authrizatin t prvide MassMutual with instructins t transfer the QDRO assignment amunt frm the participant s accunt int the alternate payee s accunt. If yu previusly submitted a QDRO Participant Accunt Hld Request frm, nce the alternate payee s QDRO assignment has been transferred int his r her accunt, MassMutual will autmatically reactivate the participant s accunt (e.g., lift the hld ). The Participant must request r restart any suspended withdrawal transactins and, if applicable, participant plan lans affected by the hld placed n his/her accunt. Distributin The distributin t the alternate payee must be made in accrdance with the IRC, ERISA, and terms f the Plan. Generally, due t certain IRS ntice requirements, the QDRO cannt prvide instructins as t hw the alternate payee will receive their distributin (e.g., t directly rll ver a spuse alternate payee s assignment t an eligible retirement plan r IRA). Upn distributin, the alternate payee will elect hw their accunt will be distributed. If the alternate payee requests an immediate distributin, prvide them with QDRO Prcessing Frm, Part 2 - QDRO Payment Request. Submit the cmpleted and signed frm alng with QDRO Prcessing Frm, Part 1 - QDRO Assignment Authrizatin t MassMutual. Nte: If the alternate payee s accunt balance is equal t r lesser that the Plan s cashut limit, yu must als prvide an Autmatic Rllver Ntice describing the Plan s autmatic cashut prvisin. The alternate payee s accunt will be autmatically distributed withut their cnsent if they d nt return the QDRO Prcessing Frm, Part 2 - QDRO Benefit Payment Request frm. Refer t yur Plan dcument fr this limit and t determine if the rllver sub-accunt is r is nt part f the accunt balance fr this purpse If the alternate payee decides t defer distributin, please prvide them with QDRO Prcessing Frm, Part 2 - QDRO Payment Request upn their request f a distributin. Submit the cmpleted and signed frm t MassMutual. Please refer t MassMutual QDRO Cntacts sheet at the back f the QDRO Kit fr submissin instructins. Taxatin A distributin paid t a spuse r frmer spuse alternate payee is treated differently fr taxatin purpses than a distributin paid t a nn-spuse alternate payee. Spuse r Frmer Spuse Alternate Payee Generally, distributins are included in the alternate payee s incme. If there is basis (e.g., after-tax cntributins, designated Rth 401(k) cntributins) in the participant s accunt, IRC 72(m)(10) requires that the alternate payee receive a pr rata prtin. A distributin paid t a spuse r frmer spuse alternate payee is eligible fr direct r indirect rllver. If the alternate payee des nt elect t directly rll ver the distributin, 20% federal incme taxes are required t be withheld n the taxable prtin. State incme tax withhlding may als apply. The distributin will be reprted n IRS Frm 1099-R as taxable t the alternate payee under his r her scial security number. Nn-spuse Alternate Payee Generally, distributins are taxable t the participant. A distributin t a nnspuse alternate payee is nt eligible fr direct r indirect rllver and is subject t vluntary federal incme tax withhlding. Unless the participant elects n withhlding r a different withhlding amunt, 10% federal incme taxes must be withheld n the taxable prtin f the distributin. State incme tax withhlding may als apply. When the nn-spuse alternate payee requests a distributin, yu will need t prvide the participant with the Incme Tax Withhlding sectin f the QDRO Prcessing Frm, Part 2 - QDRO Payment Request frm. The distributin will be reprted n IRS Frm 1099-R as taxable t the participant under his r her scial security number. Nte: If withhlding is taken frm the nn-spuse alternate payee s distributin, it may be cnsidered in vilatin f the QDRO. Yu shuld discuss with yur legal r tax advisr if such withhlding impacts the QDRO befre yu authrize the distributin. 8

9 QDRO Prcessing Instructins Once the Order is qualified, yu will prvide MassMutual with the QDRO Prcessing Frm in rder t carry ut the QDRO s prvisins. Frms and ntices may be btained thrugh ur website. Please refer t MassMutual QDRO Cntacts sheet at the back f the QDRO Kit fr the lcatin f the materials. Please DO NOT send the Order, QDRO, QDRO Checklist, QDRO Assignment Amunt Wrksheet, letters, r Beneficiary Designatin Frm t MassMutual; keep them fr yur recrds. If yu previusly submitted a QDRO Participant Accunt Hld Request frm, nce yu have submitted the cmpleted and authrized QDRO Prcessing Frm and assets are transferred int the alternate payee s accunt, MassMutual will autmatically reactivate the participant s accunt (e.g., lift the hld ). The Participant must request r restart any suspended withdrawal transactins and, if applicable, participant plan lans affected by the hld placed n his/her accunt. A. Immediate Payment: If the alternate payee s assignment is t be paid immediately, please fllw these steps: Step One Cmplete the QDRO Prcessing Frm, Part 1 - QDRO Assignment Authrizatin. Step Tw Prvide the alternate payee(s) with the fllwing: QDRO Prcessing Frm, Part 2 - QDRO Payment Request Distributin Ntice and Special Tax Ntice Autmatic Rllver Ntice, nly if their accunt is $5,000 (r lwer Plan limit) r less. Refer t yur Plan dcument fr this limit and t determine if the rllver sub-accunt is r is nt part f the accunt balance fr this purpse. Nte: If the alternate payee is a nn-spuse, prvide the participant with the Federal Incme Tax Withhlding sectin f the QDRO Prcessing Frm, Part 2 - QDRO Payment Request t cmplete and sign. Step Three Send the cmpleted and authrized QDRO Prcessing Frm (bth Part 1 and Part 2) t MassMutual fr prcessing. Nte: Yu may, but are nt required t, prvide the participant with a new Beneficiary Designatin Frm. B. Deferred Payment: If the alternate payee s accunt is t be paid at a later date (i.e., deferred), please fllw these steps: Step One Cmplete the QDRO Prcessing Frm, Part 1 - QDRO Assignment Authrizatin. Nte: If the alternate payee s accunt is equal t r lwer than the Plan s Small Accunt Cash-Out Limit (e.g., $5,000), the Plan may pay the alternate payee immediately by fllwing the Immediate Payment steps abve. Step Tw Send the QDRO Prcessing Frm, Part 1 - QDRO Assignment Authrizatin t MassMutual fr prcessing. Nte: Fllwing the creatin f the alternate payee s accunt, he r she will have the same rights as the participant t elect hw their accunt will be invested. Refer t MassMutual QDRO Cntacts sheet fr accunt access instructins. Step Three Prvide the alternate payee with a Beneficiary Designatin Frm and keep it fr yur recrds. Nte: Yu may, but are nt required t, prvide the participant with a new Beneficiary Designatin Frm. Step Fur When the alternate payee eventually decides t take a distributin frm the Plan, prvide the alternate payee with the fllwing and will send the cmpleted and authrized frm t MassMutual fr prcessing: QDRO Prcessing Frm, Part 2 - QDRO Payment Request Distributin Ntice and Special Tax Ntice Autmatic Rllver Ntice, nly if their accunt is $5,000 (r lwer Plan limit) r less. Refer t yur Plan dcument fr this limit and t determine if the rllver sub-accunt is r is nt part f the accunt balance fr this purpse. Nte: If the alternate payee is a nn-spuse, prvide the participant with the Federal Incme Tax Withhlding sectin f QDRO Prcessing Frm, Part 2 - QDRO Payment Request t cmplete and sign. 9

10 C. Imprtant Ntes: If the alternate payee is the participant's spuse r frmer spuse, the alternate payee is generally respnsible fr taxatin. If the Order states the participant is respnsible fr taxatin, this may have impact n the qualificatin f the Order and yu shuld speak t yur legal r tax advisr prir t authrizing a distributin t the alternate payee. A distributin t a spuse r frmer spuse alternate payee is eligible fr direct r indirect rllver. Unless the distributin is directly rlled ver, 20% federal incme taxes will be withheld n the taxable prtin. State withhlding may als apply. If the participant has any basis in the Plan (e.g., after-tax cntributins, designated Rth 401(k) cntributins), IRC 72(m)(10) requires that the basis be assigned t the spuse r frmer spuse alternate payee n a pr rata basis. If MassMutual did nt recrdkeep yur Plan as f the Valuatin Date, yu will need t btain the basis amunt frm the prir recrdkeeper r yur recrds as f the Valuatin Date. If the alternate payee(s) is a nn-spuse, the participant is generally respnsible fr taxatin. The distributin t the nnspuse alternate payee is nt eligible fr direct r indirect rllver and is subject t vluntary withhlding. Unless the participant elects n withhlding r a different withhlding amunt, 10% federal incme taxes must be withheld n the taxable prtin f the distributin. State withhlding may als apply. Nte: If withhlding is taken frm the nn-spuse alternate payee s distributin, it may be cnsidered in vilatin f the QDRO. Yu shuld discuss with yur legal r tax advisr if such withhlding impacts the qualificatin f the QDRO befre yu authrize the distributin. Yu and the participant shuld pay careful attentin if the QDRO cntains surviving spuse language. Shuld the participant die befre his r her accunt is distributed, the spuse r frmer spuse alternate payee may be entitled t the Plan s death benefit. Additinally, spusal r frmer spusal alternate payee cnsent may be required fr the participant t designate a different beneficiary, r t request certain plan distributins r lans. If the participant is subject t a QDRO and is due an RMD, an RMD generally must als be paid t the alternate payee. Generally, the alternate payee is tied t the participant s RMD and must take an RMD even if the alternate payee is nt age 70 ½. A frmer spuse t whm all r a prtin f the participant s benefit is payable under a QDRO is treated as the participant s spuse (r surviving spuse) fr purpses f applying the RMD rules. These rules apply regardless whether the QDRO states that the frmer spuse is r is nt treated as the spuse fr ther Plan purpses. If a participant s accunt is n hld due t a pending qualificatin f a DRO, the RMD des nt have t be paid t the participant until after the rder is qualified as lng as the DRO is qualified within the 18-mnth qualificatin perid. Within the 18-mnth qualificatin perid, the plan will nt be cnsidered in vilatin f the RMD rules and will nt risk disqualificatin nr will the affected participant be subject t the 50% excise tax fr late RMDs. If the participant did nt receive RMDs during the Order determinatin perid, after the Order is determined t be qualified r at the end f the 18-mnth perid, the participant s missed RMDs must be made up by the end f that year. After yu determine the DRO is qualified, the alternate s payee s RMD is determined based n hw their assignment is accunted fr in the Plan s recrds (e.g., alternate payee has a separate accunt). Please cntact yur Accunt Manager if the participant is due an RMD. 10

11 MassMutual QDRO Cntacts MassMutual s Retirement Plans Website: Lg nt Plan Access at: Plan Dcuments: Please cntact yur Accunt Manager. Participant Statements: Frm the Participants sectin under Plan Administratin, yu can search fr an emplyee by last name r SSN, and clicking Retrieve Participants. The search results appear in a list frmat that prvides yu with a quick snapsht f the participant, status and balance. Frm the drp dwn menu next t the participant, select the Statements feature. QDRO Tls: Frm the Plan Tls sectin under Plan Administratin, click n Frms and Manuals. Under Manuals materials will be lcated under the heading f QDRO click n any f the fllwing dcuments: QDRO Infrmatinal Kit Sample QDRO Checklist Sample Prcedures Related t Determining The Status f A Qualified Dmestic Relatins Order Sample Letters Frm the Plan Tls sectin under Plan Administratin click n Frms and Manuals. Under Frms click n any f the fllwing frms: QDRO Participant Accunt Hld Request frm QDRO Prcessing Frm cntaining: Part 1 - QDRO Assignment Authrizatin Part 2 - QDRO Benefit Payment Request Frms: Cmpleted and signed frms in gd rder may be faxed t ; ed t mmprcessing@massmutual.cm r mailed t: Mail Address: Overnight Mail Address: MassMutual Retirement Services MassMutual Retirement Services P.O. Bx Griffin Rad Nrth Hartfrd, CT Windsr, CT Nte: Duplicate requests fr a single distributin, such as a fax fllwed by a mailed riginal, may result in multiple distributins. MassMutual will nt be respnsible fr any increase r decrease in accunt value based n investment perfrmance r charges that arise frm duplicate requests fr a single distributin. Accunt Manager: Fr plan dcument requests, vested accunt balance and/r utstanding lan amunt as f the Valuatin Date (if nt n ur website), estimated earnings/lss calculatin requests (Bundled plans nly) r questins abut MassMutual s QDRO prcess: Yur designated Accunt Manager s address Phne: Facsimile: Retirement Plans Service Center: Phne: Service representatives are available frm 8:30 a.m. 8:00 p.m. (Eastern Time) Mnday thrugh Friday Alternate Payee Accunt Access: If the alternate payee decides t defer their payment, he r she will have the same rights as the participant t elect hw their accunt will be invested. The participant s investments will be mapped t the alternate payee s accunt. After the alternate payee s accunt is created, he r she will need t enrll nline r ver the phne by fllwing the instructins in the Easy Access T Yur Accunt dcument. We recmmend that yu include this dcument with yur letter ntifying the alternate payee that the rder is qualified. Other Cntacts: Participant, alternate payee (r their respective attrneys) questins: Yu r yur tax r legal advisr. Please d nt refer them t MassMutual. Yur specific Order qualificatin issues and questins: Yur tax r legal advisr. Als, the Department f Labr Emplyee Benefits Security Administratin s (EBSA) Website at 11