Is a QDRO always needed for IRA split?

A QDRO is used to determine the value of a qualified plan, and to divide it appropriately between the spouses. If the spouses agree to a division without that evaluation, a QDRO is not required.

If the parties enter into a settlement agreement and the court issues an order based on it, the brokerage has to comply, QDRO or not.

It's normally done by an actuary. The calculations are very particular. They may be very easy for an actuary, but would be difficult for someone not trained in the sort of mathematical calculations required.

The answer depends upon whether the SEP-IRA is subject to Title I of ERISA. A SEP_IRA created solely for a sole proprietor (no employees) is not subject to ERISA and a QDRO is not required. If there were employees, then a QDRO is required as that plan is subject to ERISA.

The preceding is also true when you only have partners in a plan.

However, there are many trustees or plan administrators of SEP-IRAs that will only distribute to another party if they have a QDRO.

There is no stock form. The regulatiosn require publication of sample language that may be used. The link below will walk you through the requirements of a valid QDRO for a specific type of plan (with sample language). Once you read it, you will see why you want to have a professional draft one.

Let me make sure that I understand... this will be a split of an IRA or a SEP-IRA that belongs to a Sole-Prop, no employees, no partners. So, in general we are OK without the QDRO on that point.

The valuation is to be simple as the IRA is a mutual fund. The agreement is to split the accounts based on market value as of the end of a selected day to equalize the amounts in the total IRA accounts. So, for example, spouse A has a 401K worth $10K. Spouse B has an IRA worth $20K and a SEP worth $ 50K. So Spouse B has to give Spouse A $30K to equalize the accounts !Still sound like "no QDRO" is OK?

One caveat seems to be that the administrator has to agree to the split without requiring a QDRO, correct?

Thanks again,

Assuming that none of the retirement accounts have a cost basis and the value is readily available (securities with publicly available price quotes) then your analysis is correct. The easiest solution is a split of the SEP-IRA. The law does not require a QDRO. The administrator or trustee of the SEP is probably going to want one as they have no idea that it is a SEP not covered by Title 1 of ERISA.