What is a QDRO and why do I need one?

By Tim Satre
March 18, 2015

A Qualified Domestic Relations Order (QDRO) is included in a divorce decree when you’re going to split a savings plan, 401K, government pension, or a corporate pension plan: any of the qualified plans that are offered through company employment. The divorce decree is not sufficient to actually receive those assets, so a QDRO (pronounced “kwa-dro”) is necessary to initiate the transaction. Companies usually have their own sample document; there’s no standard one-size-fits-all Qualified Domestic Relations Order for every company.

There are all sorts of different plans that require this document in order to divide the retirement assets to the alternate payee or the spouse that’s not working for that particular company or entity.

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March 18, 2015
Categories:  FAQs

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