Is QUALIFIED DOMESTIC RELATIONS ORDER considered d...
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bel77
New Member

Is QUALIFIED DOMESTIC RELATIONS ORDER considered dividend payment?

 
2 Replies
DavidD66
Employee Tax Expert

Is QUALIFIED DOMESTIC RELATIONS ORDER considered dividend payment?

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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DSid
Returning Member

Is QUALIFIED DOMESTIC RELATIONS ORDER considered dividend payment?

Is my monthly pension taxed after the QUALIFIED DOMESTIC RELATIONS ORDER payment is made?

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