@dmertz - i had the same initial impression about the example being flawed because it simply ignored tax ramifications, risk, and other limitations of each source of the $750K. But all that aside, I have been fishing around forever for any cases that have dealt with multiple distributions. I would hate to predicate an agreement based on a non-penalty assumption and then find out the waiver is disallowed by the IRS.
I have recorded conference calls w three Fidelity benefits consultants familiar with the plan; all of them have stated that a QDRO account in the plan allows for on-demand, non-uniform withdrawals to be made through their online request portal and they are transferred in a matter of days (subject to 20% mandatory withholding).
Given the plan allows it, my only hesitation surrounds how the IRS will view it. Have you seen any cases upholding the non-penalty view?
