No, a Qualified Domestic Relations Order (QDRO) is not considered a dividend. A QDRO is a judicial order as part of the property division in a divorce or legal separation. It recognizes the joint ownership of a retirement plan (such as a 401(k) or a pension, and splits the assets/benefits accordingly. If you are receiving a distribution from a retirement plan such as a 401(k) or payments from a pension plan under a QDRO, this is retirement income, and you should be receiving a Form 1099-R. Distributions made under a QDROs are generally taxed the same way as any other retirement plan distribution, although a lump sum distribution from a QDRO is not subject to the 10% early withdrawal penalty.
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