Updated: July 28, 2026

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A Qualified Domestic Relations Order under IRC Section 414(p) typically transfers between 30 percent and 50 percent of a 401(k) balance to the alternate payee in a community property divorce.

For a project-manager-tier earner aged 55 to 60 who walks out of the decree with $150,000 to $250,000 in a self-directed IRA, the makeup math has a hard ceiling. Roughly 10 years remain to full retirement age. Federal contribution caps are set annually by the IRS under the cost-of-living-adjustment cycle. And a single-filer bracket schedule compresses the cost of every dollar above the standard deduction.

The mechanics: catch-up contributions, Roth conversion bracket-fill, and a defensive IRC Section 408(m)(3) precious metals slice.

The QDRO rollover itself is covered in our QDRO divorce rollover rules guide. This article is the contribution-side rebuild plan that runs from the decree to age 65, paired with the single-filer tax setup post-divorce and our OPRS-reviewed dealer shortlist for the metals slice.

Table of contents show

30-second verdict

Stack three catch-up lanes annually. Maximize the IRC Section 414(v) 401(k) catch-up if a workplace plan is still open, layer the IRC Section 219(b)(5)(B) IRA catch-up, and prepare the IRC Section 414(v)(2)(E) ages 60 to 63 super catch-up window introduced by Section 109 of the SECURE 2.0 Act for the four most expensive rebuild years.
Run the Roth conversion ladder annually inside the single-filer bracket. Each tax year, convert pre-tax IRA dollars up to the top of the chosen single-filer marginal bracket per IRC Section 408A(d)(3). The 10-year runway gives roughly 10 conversion years.
Size the IRC Section 408(m)(3) precious metals slice as a defensive sleeve, not the engine. A self-directed IRA can hold IRS-eligible gold and silver under the purity rules of Section 408(m)(3). The slice sits inside the broader IRA, not in place of it.
Treat sequence-of-returns risk as the binding constraint. A 10-year runway absorbs a drawdown poorly. The rebuild plan needs a defensive allocation pre-set, not improvised after a market move.
Settle the dealer choice once, then leave it alone. The rebuild plan compounds when the IRA custodian, depository, and dealer are stable for 10 years. Dealer churn destroys the math.

What “loss makeup” actually means after a QDRO

Loss makeup is the contribution-and-conversion plan that closes the gap between the post-QDRO balance and the retirement target the participant carried into the marriage. The mechanics are mechanical, not emotional. A $400,000 401(k) split 50 percent under a community property decree leaves the alternate payee with $200,000 in a rolled-over IRA.

If the original retirement target assumed $400,000 at age 55 compounding to a higher number at full retirement age, the post-QDRO base now compounds from $200,000 to the same horizon. The math gap is the difference between the two compounded paths, minus whatever new contributions and conversions can add over the remaining years.

The federal levers available to close the gap are narrow and rule-bound. IRS Publication 590-A sets the contribution mechanics under IRC Sections 219 and 408. IRC Section 414(v) layers a catch-up on workplace plans for participants 50 and older.

Section 109 of the SECURE 2.0 Act of 2022 (Public Law 117-328, Division T) added the ages 60 to 63 super catch-up. It is set at the greater of $10,000 or 150 percent of the regular Section 414(v) catch-up, indexed annually. IRC Section 408A(d)(3) governs Roth conversions, which carry no income limit and convert pre-tax dollars at the single-filer bracket cost.

None of these levers is large in absolute dollars in any single year. Stacked across 10 years, they materially close the gap.

Worth knowing before you act: the makeup plan is a cash-flow plan, not a portfolio plan. The contributions and conversions only happen if the post-decree single-filer cash flow funds them. The IRC Section 6654 estimated-tax mechanics on Roth conversions (covered in the single-filer tax setup guide) determine when the conversion tax bill is due and how much cushion is needed in non-retirement cash.

The 2026 contribution and catch-up dollar ceilings

The annual ceilings on the three catch-up lanes are set by the IRS revenue procedure cycle under IRC Section 415(d).

For 2026, approximate figures from IRS Notice 2024-80 and the IRC Section 415(d) annual reset mechanism place the elective deferral limit on 401(k) plans under IRC Section 402(g) at roughly $24,500. The IRC Section 414(v) catch-up for participants 50 and older sits at $7,500. The SECURE 2.0 ages 60 to 63 super catch-up is $11,250, which is 150 percent of the regular catch-up.

The IRA limit under IRC Section 219 sits at $7,000 with a $1,000 catch-up for participants 50 and older. The defined-contribution annual addition ceiling under IRC Section 415(c) is roughly $71,000. The exact figures publish in the fourth quarter for the following plan year and may shift by index.

Bar chart comparing the 2026 federal contribution and catch-up dollar ceilings relevant to a 401(k) QDRO loss makeup plan for an alternate payee aged 55 to 63. IRC Section 219 IRA base limit at approximately 7000 dollars. IRC Section 219(b)(5)(B) IRA catch-up for participants 50 and older at approximately 8000 dollars total. IRC Section 402(g) 401(k) elective deferral limit at approximately 24500 dollars. IRC Section 414(v) 401(k) catch-up for participants 50 and older at approximately 32000 dollars total. IRC Section 414(v)(2)(E) SECURE 2.0 ages 60 to 63 super catch-up at approximately 35750 dollars total. IRC Section 415(c) defined contribution annual addition ceiling at approximately 71000 dollars. — Figure 1. Approximate 2026 federal contribution and catch-up dollar ceilings for a 401(k) QDRO loss makeup plan. The IRC Section 414(v)(2)(E) super catch-up window for participants aged 60 to 63 (introduced by Section 109 of the SECURE 2.0 Act of 2022) is the densest catch-up lane on the modern federal schedule. Sources: IRS Notice 2024-80, IRS Publication 590-A, 26 U.S. Code Sections 219, 402(g), 414(v), 415(c), and Section 109 of the SECURE 2.0 Act of 2022 (Public Law 117-328, Division T).

Can you roll your account into a precious metals IRA? Eligibility checker

Most retirement money can move into a precious metals IRA once it qualifies as an eligible rollover distribution. Pick your account type and situation for a general answer. Always confirm specifics with your plan administrator or custodian.

Account type Your situation

General guidance only, not tax or financial advice. Eligibility depends on your specific plan document and IRS rules; confirm with your plan administrator and a tax advisor. A direct trustee-to-trustee transfer avoids the 60-day rule and 20% mandatory withholding.

The right dealer explains every fee up front. Get Augusta's free precious metals IRA company checklist.

In practice: a divorced single filer aged 55 to 59 with a workplace 401(k) can deposit up to roughly $32,000. That covers the elective deferral plus the Section 414(v) catch-up. You can also add $8,000 into a Traditional or Roth IRA under Section 219.

The same filer at 60 can deposit up to roughly $35,750 across the 401(k) plus the Section 414(v)(2)(E) super catch-up, plus $8,000 into the IRA. The four-year window from 60 to 63 is the densest catch-up segment Congress has created in the modern IRC, and it sits directly on top of the makeup runway for the late-starter rebuild.

The Roth conversion bracket-fill mechanic post-divorce

The single-filer bracket schedule under IRC Section 1(c), as adjusted annually under IRC Section 1(f), governs the marginal cost of every conversion dollar.

A converted dollar from a Traditional IRA into a Roth IRA under IRC Section 408A(d)(3) lands on the single-filer return as ordinary income. It fills the bracket from the bottom up and triggers no additional tax once converted. Roth qualified distributions are tax-free under IRC Section 408A(d)(2) when the 5-year rule and the age 59 and a half threshold are both met.

The IRC Section 408A income limit applies to direct Roth contributions, not to conversions: a conversion has no income ceiling.

The mechanics: project single-filer ordinary income for the year (wages plus deferred-comp plus interest plus realized gains plus required minimum distributions if age 73 or older). Identify the top of the chosen marginal bracket (typically the 22 percent or 24 percent bracket for the $150,000 to $250,000 wage band). Convert pre-tax IRA dollars up to that ceiling.

Pay the tax from non-IRA cash (using IRA cash to pay the conversion tax inside the year before age 59 and a half triggers IRC Section 72(t) on the withholding portion). Repeat annually.

Over 10 years, a disciplined bracket-fill at the 22 to 24 percent rate converts roughly $200,000 to $400,000 of pre-tax dollars to Roth dollars, depending on the chosen ceiling and the wage trajectory. The detailed bracket-fill math is in the Roth conversion ladder post-divorce guide.

The trade-off: the IRC Section 1411 Net Investment Income Tax threshold sits at $200,000 modified AGI for a single filer. The Medicare Part B IRMAA tier under 42 U.S. Code Section 1395r looks back two tax years; a 2026 conversion sized too aggressively can land on the IRMAA scoring sheet for the first Medicare year at age 65. Bracket-fill discipline matters for both reasons.

Sizing the IRC Section 408(m)(3) precious metals slice

IRC Section 408(m)(3) defines the bullion and coin categories permitted inside a self-directed IRA: gold of 99.5 percent fineness, silver of 99.9 percent fineness, platinum and palladium of 99.95 percent fineness, and the U.S. Mint American Eagle exception under IRC Section 408(m)(3)(B).

The metals must be held in a non-bank trustee or depository qualifying under IRC Section 408(a) and IRS regulations. Home storage of IRA-titled metals violates the IRC Section 408(m)(1) collectibles rule and triggers a deemed distribution under IRC Section 408(m)(2). The mechanics are non-negotiable.

The role of the metals slice in the makeup plan is defensive, not generative. The Roth conversion ladder and the catch-up contributions are the dollars that build. The metals allocation absorbs a portion of the sequence-of-returns risk that a 10-year compressed runway carries.

The historical purchasing power of gold across the last 50 years of inflation cycles is the framing reason participants in the OPRS audience hold a slice, not a return forecast. Past performance is not a guarantee of future results.

Dealer choice is where the makeup plan breaks fastest. A dealer who marks up the spot price by 20 to 30 percent on premium coins converts a portion of your catch-up contribution into dealer margin before the metals even enter the depository. Sometimes these coins are framed as “exclusive” or “rare” coinage.

The same dealer who churns the position annually (recommending a swap from one coin series to another) compounds the markup loss. The 10-year math punishes both moves. See the dealers OPRS clears and the ones we warn against before the first call.

Cross-check any dealer name against the BBB Business Profile lookup and the FINRA BrokerCheck directory for any associated registered representative.

The 10-year annual cycle for the QDRO loss makeup runway

The makeup plan runs as an annual cycle, not a one-time setup. Each tax year, the cycle repeats with the updated IRS limits and the updated single-filer projection. The same five steps run from the decree year to age 65.

Flowchart showing the five-step annual cycle of the QDRO loss makeup plan for a divorced alternate payee aged 55 to 64. Step 1: pull the current-year IRS revenue procedure for the contribution and catch-up limits. Step 2: confirm the workplace 401(k) catch-up and (when applicable) ages 60 to 63 super catch-up election is active. Step 3: project single-filer ordinary income and identify the top of the chosen marginal bracket. Step 4: size the Roth conversion under IRC Section 408A(d)(3) up to the bracket ceiling and set Form 1040-ES estimated tax. Step 5: rebalance the IRC Section 408(m)(3) precious metals slice to its fixed percentage inside the same custodian. Then loop to the next tax year. — Figure 2. The five-step annual cycle of the 401(k) QDRO loss makeup plan, run from the decree year to age 65. The cycle compounds: every skipped year removes contribution room that does not refill. Sources: IRS Publication 590-A, 26 U.S. Code Sections 219, 402(g), 408A(d)(3), 408(m)(3), and 6654.

The cycle compounds. Missing the catch-up in any single year removes roughly $8,000 to $11,000 of contribution room that does not refill. Missing a Roth conversion leaves pre-tax dollars in the Traditional IRA. Those dollars may convert at a higher bracket later, or sit unconverted into the IRC Section 401(a)(9) required-minimum-distribution window at age 73. The annual cadence is the strategy.

Common mistakes in the 401(k) QDRO loss makeup plan

The compressed 10-year runway is unforgiving of the errors below. Each one is recoverable in isolation; in combination they break the math.

Skipping the IRC Section 414(v) catch-up because the workplace plan paperwork is confusing. The catch-up is elected on the same Form W-4P or the plan’s deferral election form as the regular elective deferral. Missing it removes $7,500 of room per year. Correction: confirm with HR or the plan administrator that the post-50 catch-up election is active before the first paycheck of the new tax year.
Treating the SECURE 2.0 ages 60 to 63 super catch-up as the regular catch-up. The super catch-up under IRC Section 414(v)(2)(E) only applies in the four-year window from 60 to 63 (the year the participant turns 64, the lane closes back to the regular Section 414(v) limit). Failing to plan the super catch-up window leaves roughly $15,000 of contribution room on the table across the four years. Correction: pre-budget the cash flow for the four-year window before the participant turns 60.
Converting too aggressively into the IRC Section 1411 NIIT band or the IRMAA Tier 1 ceiling. A single conversion year sized to fill the 24 percent bracket can push modified AGI above $200,000, triggering the 3.8 percent NIIT on net investment income and, two years later, the first IRMAA surcharge on Medicare Part B. Correction: project two scenarios annually (top of 22 percent and top of 24 percent) and choose the one that holds modified AGI below the NIIT and IRMAA thresholds, then revisit annually.
Using IRA cash to pay the conversion tax before age 59 and a half. The withheld portion is treated as a distribution and the 10 percent early-withdrawal tax under IRC Section 72(t) re-attaches (the IRC Section 72(t)(2)(C) QDRO waiver did not survive the rollover, as covered in the QDRO rollover guide). Correction: hold conversion tax cash outside the IRA, in a taxable account, before the conversion is initiated.
Letting a precious-metals dealer steer the entire IRA into the metals slice. A dealer who frames the makeup plan as “diversify with gold against the next downturn” is pitching, not advising. The IRC Section 408(m)(3) slice is a portion of the IRA, not the IRA. Correction: set the metals allocation as a fixed percentage of the IRA value, rebalance annually inside the same custodian, and reject dealer pitches that exceed the pre-set ceiling.
Restarting the 5-year Roth holding period clock from scratch each year. Each Roth conversion under IRC Section 408A(d)(3) starts its own 5-year clock for the 10 percent additional tax on the converted principal if withdrawn before age 59 and a half. A 55-year-old who converts in 2026 cannot withdraw the converted principal without the additional tax until 2031, even though the underlying age 59 and a half threshold may have been met sooner. Correction: track each annual conversion separately for the IRC Section 408A(d)(3)(F) clock.

Frequently asked questions on the QDRO loss makeup plan

How much can a divorced 55-year-old realistically rebuild in 10 years?

The answer depends on three inputs: the post-QDRO base, the annual contribution capacity, and the realized rate of return.

A $200,000 post-QDRO base, $32,000 in annual 401(k) plus catch-up contributions, and $8,000 in annual IRA contributions, compounded over 10 years at a generic 6 percent annual return, lands in the $560,000 to $620,000 range. The SECURE 2.0 ages 60 to 63 super catch-up adds another $15,000 to $20,000 across those four years.

The exact result depends on year-by-year returns, the Roth conversion sizing each year, and the tax rates applied. None of this is a forecast. Consult your tax advisor for your specific situation. Past performance of any asset class is not a guarantee of future results.

Does the IRC Section 72(t)(2)(C) QDRO waiver still apply to catch-up contributions made after the rollover?

No. The IRC Section 72(t)(2)(C) waiver applies only to qualified-plan distributions made directly from the source plan under the QDRO. Once the alternate payee rolls the QDRO award into a Traditional IRA, subsequent IRA distributions follow the general IRC Section 72(t) rules. New catch-up contributions made into the rolled-over IRA are governed by IRC Sections 219 and 408 and have no QDRO waiver attached. The QDRO is a one-time penalty exception, not a lifetime status.

Should the IRC Section 408(m)(3) precious metals slice be in Traditional IRA dollars or Roth IRA dollars?

The IRC does not restrict the metals allocation by Roth or Traditional treatment. Both wrappers permit IRS-eligible metals under Section 408(m)(3). The Roth wrapper produces tax-free qualified distributions; the Traditional wrapper defers tax to distribution and the IRC Section 401(a)(9) required-minimum-distribution rules apply at age 73. The choice depends on the projected distribution-phase tax rate versus the conversion-year tax rate.

The Roth wrapper is often the preferred home for the metals slice because the long holding period favors tax-free compounding, but the conversion year tax cost has to be funded outside the IRA.

What happens to the makeup plan if the alternate payee remarries during the 10-year window?

Remarriage resets your federal filing status to married-filing-jointly or married-filing-separately under IRC Section 7703. That shift moves the bracket schedule, the IRC Section 219(g) IRA deduction phase-out, and the IRC Section 408A income limit on direct Roth contributions. It also moves the NIIT threshold under IRC Section 1411 and the IRMAA tier ceilings under 42 U.S. Code Section 1395r.

The makeup plan has to be reprojected against the joint return ceilings the year of remarriage. The IRC Section 408(m)(3) precious metals slice itself is not affected by filing status; the contribution and conversion sizing around it is. The estate side of the rebuild plan keeps the account clean for the surviving spouse or heirs later, regardless of remarriage.

Can the makeup plan run inside an Augusta-style self-directed IRA?

A self-directed IRA structure custodied at a non-bank trustee qualifying under IRC Section 408(a) is the standard wrapper for an IRC Section 408(m)(3) precious metals allocation. The dealer (Augusta, Birch, Noble, or any operator on the OPRS-reviewed list) supplies the metals and the depository arrangement; the custodian holds the IRA.

The contribution and conversion side of the plan happens at the IRA level (Form 5498 reporting, Form 1099-R for distributions), not at the dealer level. The industry-reported minimum to open at the major established operators sits around $50,000 for the metals slice; smaller balances may need a different custodian arrangement.

Verify any dealer against the BBB Business Profile and the OPRS shortlist before signing.

The first 90 minutes of work on the QDRO loss makeup plan deliver the highest return of the rebuild year.

Pull the current-year IRS revenue procedure for the IRC Section 402(g) elective deferral limit and the IRC Section 414(v) catch-up. If you are age 60 to 63, also check the IRC Section 414(v)(2)(E) super catch-up. Then confirm the IRC Section 219 IRA limit and the single-filer bracket schedule. Verify the workplace 401(k) catch-up election is active for the upcoming pay period.

Set the annual IRA contribution as a recurring transfer the same month the decree is final. Project the single-filer ordinary income for the year and identify the top of the chosen marginal bracket for the first Roth conversion under IRC Section 408A(d)(3).

Sketch the IRC Section 408(m)(3) precious metals slice as a fixed percentage of the IRA value, not a dollar target. Then pick the dealer. The 2026 OPRS list names the operators we currently warn against alongside the few we currently trust, with the rationale linked to the BBB and FINRA public records behind each verdict.

Once the dealer pool is narrowed, request the free company comparison checklist (compensated link). The intake stays informational; the contribution sizing and the Roth conversion bracket-fill stay with you and your tax advisor.

Consult your tax advisor before any contribution or Roth conversion is finalized. The IRC Section 6654 estimated-tax safe-harbor selection, the IRC Section 408A(d)(3)(F) per-conversion 5-year clock, and the state conformity rules in any community property state add layers that the federal projection does not capture. The makeup plan compounds when the inputs are stable for 10 years; consistency beats optimization.

Gold IRA after 401(k) QDRO loss makeup strategy