A QDRO is a DRO which (1) requires a tax qualified plan to assign or transfer some or all of a Participant’s plan benefits to an “Alternate Payee,” (2) meets the requirements of applicable federal law, and (3) satisfies the requirements contained in the plan’s QDRO Procedures.
Section 206(d)(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and Section 414(p) of the Internal Revenue Code of 1986, as amended, provide the specific legal definition of a QDRO.
Generally, a DRO is a court order that (1) is made pursuant to state domestic relations law, and (2) provides for payment of child support, alimony, or marital property rights.
An individual who has accrued a benefit in a retirement plan based on his or her employment with the Plan’s sponsor.
An Alternate Payee can be the Participant’s spouse, former spouse, child, or other dependent.
Section 414(p) of the Internal Revenue Code and Section 206(d)(3) of ERISA require that a QDRO include the following items:
Section 414(p) of the Internal Revenue Code and Section 206(d)(3) of ERISA state that a QDRO cannot do the following:
For more information on QDRO requirements, the US Department of Labor developed a comprehensive, accessible resource “The Division of Retirement Benefits Through Qualified Domestic Relations Orders.”