What arrangements can be made for spousal or child support payments or arrearages?
For cases involving ongoing income payments or arrearages, the appropriate percentage of income stream from payout annuity contracts can be paid to the adult alternate payee. A percentage is required to reflect the fact that the income will change over time. Specifics as to the whose responsibility it is to advise TIAA when the obligation ceases or ends must be included, as must the impact of the participant’s death and issues of beneficiary designation(s). Generally deferred annuity contract accumulations are not used to satisfy immediate support needs either because the participant has not converted to income or because plan or contract restrictions may not permit income to begin until some further date. A separate interest QDRO can be implemented for significant arrears. The tax reporting for each party has to be specifically delineated.
