QUALIFIED DOMESTIC RELATIONS ORDER Definition

Bookmark and Share

QUALIFIED DOMESTIC RELATIONS ORDER (QDRO) is when a state court allocates an interest in a qualified retirement plan to a former spouse through a qualified domestic relations order. 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 IRS or another qualified retirement plan.

Learn new Accounting Terms

DISCOUNT is a decrease in value (often due to interest to be earned) or decrease in price.

GNMA MIDGETS are GNMA bonds secured by mortgages with a stated maturity of 15 years.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.