What is a QDRO?

Physician Divorce Situation


I am an internist who is in the midst of a divorce situation. My attorney is talking about something called a QDRO with respect to my retirement plan.

Question: What is a QDRO?


Dr. Joseph Burton Rellim

Springfield, Ohio


2 Responses

  1. Answer:

    Sorry to hear about your divorce.

    This topic and many others for medical professionals are addressed in more detail in the book: Risk Management and Insurance Planning for Physicians and their Advisors

    But, a QDRO, or Qualified Domestic Relations Order is a judgment, decree, or order made pursuant to a state’s domestic relations laws. It relates to child support, alimony payments, or the marital property rights of a spouse, former spouse, child, or other dependent of a retirement plan participant. Such an order creates or recognizes the existence of an alternate payee’s rights to all or a portion of the benefits payable with respect to a participant under a qualified retirement plan.

    Thanks for asking.
    Other comments are appreciated.
    -Dr. David E. Marcinko; MBA, CMP

    Related Information Sources:
    Medical Practice Management: http://www.springerpub.com/prod.aspx?prod_id=23759
    Physician Financial Planning: http://www.jbpub.com/catalog/0763745790
    Medical Risk Management: http://www.jbpub.com/catalog/9780763733421
    Healthcare Organizations: http://www.HealthcareFinancials.com
    Health Administration Terms: http://www.HealthDictionarySeries.com

    Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Executive-Post – is available for seminar or speaking engagements. Contact him at: MarcinkoAdvisors@msn.com or Bio: http://www.stpub.com/pubs/authors/MARCINKO.htm
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  2. QDRO v. TID

    The major difference between a QDRO and a transfer incident to a divorce [TID] is that a transfer incident to a divorce does not allow for the receiving ex-spouse to receive the funds penalty-free if not rolled over into a receiving IRA.

    With a QDRO, although the funds are taxable to the receiving ex-spouse, there is no 10% penalty if the funds are withdrawn prior to his or her reaching age 59½. If the originating account is an IRA, the 10% early withdrawal penalty will apply in addition to ordinary income tax.

    Dr. David E. Marcinko MBA


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