In regard to a Qualified Domestic Relations Order (QDRO), a plan can still provide for payment even if what condition holds?

A Qualified Domestic Relations Order (QDRO) is a legal order that allows a divorced spouse to receive a portion of the retirement plan benefits. One key aspect of a QDRO is that it can be effective regardless of whether the participant is entitled to receive a distribution at that particular time. This means that even if the participant has not yet met the requirements to access their retirement benefits, the QDRO can still enforce the payment to the alternate payee.

In other words, the fact that the participant is not entitled to a distribution does not prevent the plan from honoring the QDRO. This is significant because it allows the courts to ensure that the rights of the alternate payee are protected and that they can receive their designated share of the benefits when the participant eventually does become eligible for distribution.

The other options would not support the premise of a QDRO being enforceable under all circumstances. For instance, if the participant has not reached retirement age, that alone would not prevent a QDRO from being effective; similarly, issues regarding insufficient funds or plan funding do not inherently negate the ability of a QDRO to dictate how benefits should be distributed. These aspects may complicate the payout but do not circumvent the enforcement of the QD