A QDRO is a special court order used to subdivide pension and retirement plans due to a divorce.

 

Qualified Domestic Relations Order (QDRO)

A qualified domestic relations order (QDRO) is a specialized court order created at the end of a divorce, which authorizes various retirement and pension plans to split those accounts between the parties. A QDRO is a federally-mandated order, which is issued by the family court, that granted the divorce. A QDRO must be carefully drafted to the exact specifications of the retirement plan, and it must also meet both federal and family court standards.

Retirement plans we work with

We provide QDRO preparation services for private, government, and military retirement plans including;
  •  Individual Retirement Accounts 401(K)
  •  Thrift Savings Plans (TSP)
  •  Private Pension Plans
  •  Civil Service Pension Plans

Our QDRO services include

  •  Drafting the QDRO to comply with your divorce decree and local court rules
  •  Work with the plan administrator to make sure the QDRO meets all the requirements

Special rules to keep in mind when dealing with distributions from a QDRO

  • Generally the 10% early distribution tax penalty is waived for the plan participant when funds from an eligible retirement plan is subdivided incident to a divorce and executed via a QDRO.
  • A QDRO distribution that is paid to a child or other dependent is taxed to the plan participant.
  • The receiving spouse may be able to roll over tax-free all or part of a distribution from a qualified retirement plan that he or she received under a QDRO.
  • You must include in your income any part that you don't roll over within 60 days to another qualified retirement plan or to a traditional or Roth IRA. Also 20% of the distribution may be withheld by the plan administrator for income tax purposes.
  • If you are under age 59 when a distribution is paid to you that you did not roll over, you may have to pay a 10% tax (in addition to the regular income tax) on the taxable part (including any tax withheld) that you don't roll over.
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    Tax Resources
    See IRS Publication 575 and IRS Publication 504


 

 

27212 Foamflower Blvd, Wesley Chapel, FL 33544
(813) 966-4503