Qualified Domestic Relations Order
United States Tax Concept of Qualified Domestic Relations Order (QDRO)
A state court order that allocates an interest in a qualified retirement plan to a former spouse. 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 received, or the benefits can be rolled over tax free into an IRA or another qualified retirement plan.