Qualified Domestic Relations Order

Qualified Domestic Relations Order

Qualified Domestic Relations Order means:
a domestic relations order made in accordance with state domestic relations laws for alimony, child support, or the settlement of marital property rights. Former IRC (check if this IRC provision is current here) §4l4(p).

Description and Definition of Qualified Domestic Relations Order (QDRO)

A state court order that allocates an interest in a qualified retirement plan to a former spouse. Payments made to a former spouse as the result of a QDRO will not result in the taxpayer being assessed a penalty for early withdrawal from the plan. The former spouse will be taxed on the benefits when received, or the benefits can be rolled over tax free into an IRA or another qualified retirement plan.

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