Save time with our cheat sheets, fact sheets, checklists & books!

February 27, 2009

Do the Qualified domestic relations order (QDRO) rules apply to IRAs


Do the Qualified domestic relations order (QDRO) rules apply to IRAs

I received some IRA assets from my former spouse as part of a divorce settlement. These amounts were transferred to an IRA in my name and social security number. I know that under the qualified domestic relations order (QDRO) rules, my distributions from such amounts under a qualified plan would be penalty free. Can I apply the same rule to an IRA?

No. The QDRO early distribution exception does not apply to IRA assets. Therefore, any distributions that you take from the IRA before you reach the age of 59 ½ will be subject to the early distribution penalty, unless you qualify for another exception


Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Salary Deferral Contribution

Definition A contribution made pursuant to a participant’s election to have a portion of his/her salary/wages  contributed to his/ her employer sponsored plan  rather than

Be among the first to know when

IRA Rules