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Abstract
A qualified domestic relations order (QDRO) is a court ordered assignment of benefits of a qualified defined benefit or defined contribution plan to a nonemployee alternate payee such as a spouse, former spouse or child. When retirement benefits are distributed to a qualified plan participant's spouse or former spouse pursuant to a QDRO, the spouse rather than the participant is taxed on the distribution. An alternate payee who receives benefits under a QDRO can roll over the benefits to a traditional IRA. The 10% penalty tax that is normally imposed on distributions from a qualified retirement plan to a participant who is less than age 59 1/2 does not apply to distributions made to an alternate payee pursuant to a QDRO.