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Accounting > Qualified Domestic Relations Order (Qdro)
The following information is about Qualified Domestic Relations Order (Qdro).
Qualified Domestic Relations Order (Qdro) Defined
is when a state court allocates an interest in a qualified retirement plan to a former spouse through a qualified domestic relations order. 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 receivedor the benefits can be rolled over tax free into an IRS or another qualified retirement plan.
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