Need A QDRO?
What is a QDRO?
What is a QDRO?
A Qualified Domestic Relations Order (QDRO) is the legal document used in a divorce or legal separation to divide retirement plans without tax consequences.
What it does:
A QDRO allows a retirement plan administrator (like for a 401(k) or pension) to legally transfer a portion of one spouse’s retirement account to the other without penalties or taxes.
It ensures the non-employee spouse (called the “alternate payee”) gets their share of the retirement benefits.
Why it's important:
Without a QDRO, any attempt to divide a retirement plan could trigger tax penalties, delays, or legal issues—and the receiving spouse might not get their share.
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Do I need a QDRO?
You need a QDRO if:
You’re dividing retirement accounts in a divorce that are part of the qualified plans below:
- 401(k)
- 403(b)
- Pension plan
These plans require a QDRO to legally split the account and avoid early withdrawal penalties or tax consequences.
Reach out below for more information on QDROs.