Other Issues

1. In general, benefits paid to an alternate payee are taxed and reported in the same fashion as if the alternate payee was a participant in the plan. Also, such benefits are eligible for rollover treatment. Note that the federal tax consequences and rollover opportunities may be different for an alternate payee who is deemed a spouse under state but not federal law, and who is not considered a dependent of the participant.
2. No early distribution penalties apply to distributions under an ADRO. Note that this may be different in cases where the alternate payee is deemed a spouse under state law but not federal law, and is not considered a dependent of the participant.
3. The rights of a subsequent spouse are junior to the benefits awarded under an ADRO to a former spouse.
4. The order may not require the plan to provide increased benefits (determined on the basis of actuarial value).
5. After a participant is considered terminated from the plan (i.e., the participant has received his/her benefit in a lump sum or received a distribution of his/her provider account(s)), an alternate payee cannot present a Domestic Relations Order to the plan nor will the plan approve such a Domestic Relations Order.