The box labeled "Alternate Payee Under QDRO" is only presented by TurboTax is you have entered a Form 1099-R for a taxable distribution from a qualified retirement plan (401(k), 403(b), 457(b) or the federal TSP). Such a Form 1099-R will have a code 1 in box 7 and the IRA/SEP/SIMPLE box will not be marked. IRAs are not eligible for this penalty exception; transfer of an IRA incident to divorce is not done under a QDRO.