Publication 504: Divorced or Separated Individuals - Qualified Domestic Relations Order Rollovers

Home
About Howard I. Goldstein
Other Divorce Professionals
The Process of Divorce in a Nutshell
Preparing for Divorce
Child Custody in Massachusetts
Child Support in Massachusetts
Prenuptial Agreements
Collaborative Divorce Professionals in Massachusetts
Collaborative Practice

Divorce Resources

Divorce Law Articles
Massachusetts Divorce Forms
Supplemental Rule 410
Checklist for Divorce
Separation Agreements
Parent Education Programs
Massachusetts Divorce Laws - Chapter 208
Publication 504: Divorced or Separated Individuals
Divorce Law Firm &
Divorce Attorney Directory
Divorce Resources
Divorce Terminology

New England Appellate Cases on Family Law & Divorce

Connecticut Divorce Law Cases
Maine Divorce Law Cases
Massachusetts Divorce Law Cases
New Hampshire Divorce Law Cases
Rhode Island Divorce Law Cases
Vermont Divorce Law Cases

Appellate Cases Family Law & Divorce in Other States

Divorce Cases in Other States

Back to Publication 504: Divorced or Separated Individuals Main Menu

Qualified Domestic Relations Order

A qualified domestic relations order (QDRO) is a judgment, decree, or court order (including an approved property settlement agreement) issued under a domestic relations law that:

1. Relates to the rights of someone other than a participant to receive benefits from a qualified retirement plan (such as most pension and profit-sharing plans) or a tax-sheltered annuity,
2. Relates to payment of child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependent of the participant, and
3. Specifies the amount or portion of the participant's benefits to be paid to the participant's spouse, former spouse, child, or dependent.

Benefits paid to a child or dependent. Benefits paid under a QDRO to the plan participant's child or dependent are treated as paid to the participant. For information about the tax treatment of benefits from retirement plans, see Publication 575.

Benefits paid to a spouse or former spouse. Benefits paid under a QDRO to the plan participant's spouse or former spouse generally must be included in the spouse's or former spouse's income. If the participant contributed to the retirement plan, a prorated share of the participant's cost (investment in the contract) is used to figure the taxable amount.   The spouse or former spouse can use the special rules for lump-sum distributions if the benefits would have been treated as a lump-sum distribution had the participant received them. For this purpose, consider only the balance to the spouse's or former spouse's credit in determining whether the distribution is a total distribution. See Lump-Sum Distributions in Publication 575 for information about the special rules.

Rollovers. If you receive an eligible rollover distribution under a QDRO as the plan participant's spouse or former spouse, you may be able to roll it over tax free into a traditional individual retirement arrangement (IRA) or another qualified retirement plan.   For more information on the tax treatment of eligible rollover distributions, see Publication 575.

Back to top