How does a QDRO rollover work?
I'm trying to make sure I understand the mechanics of how a QDRO rollover works when transferring funds from a 403b to an IRA account.
It's my understanding that the QDRO specifies the alternate payee, who in this case receives part of the 403b account.
What's not clear to me is what happens after that. From what I've read, the alternate payee has 60 days to roll these funds over into an IRA. Does this mean that the alternate payee receives a check and then has 60 days to roll this over into an IRA?
I've also read that taxes would be withheld on the distribution from the 403b and that the funds should be rolled over directly to an IRA. But how does that work if the funds are distributed to an alternate payee?
Has anybody here gone through this and if so, can you let me know the best/easiest way to handle a QDRO rollover?
Thanks in advance!
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