@ReneeM7122 - the exception does apply in the case of a QDRO. As long as it is allowed under the terms of the plan (which I confirmed it does for a Fidelity 401k), then the 10% penalty will NOT be assessed. I don't think that point is up for debate.
What is up for debate is whether the newly assigned 401k QDRO account can be drawn from with multiple distributions subsequent to this initial, 10% penalty-free distribution.
