Marsha K. Huggins - Page 6




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          ordinarily is the participant or beneficiary who, under the plan,           
          is entitled to receive the distribution.  See Darby v.                      
          Commissioner, 97 T.C. 51, 58 (1991); Estate of Machat v.                    
          Commissioner, T.C. Memo. 1998-154; Smith v. Commissioner, T.C.              
          Memo. 1996-292.                                                             
               Section 402(e)(1)(A), however, provides an exception to this           
          general rule.  Section 402(e)(1)(A) provides that an "alternate             
          payee", who is the spouse or former spouse of the plan                      
          participant, shall be treated as the distributee of any                     
          distribution or payment made to the "alternate payee" under a               
          "qualified domestic relations order" (QDRO) as defined in section           
          414(p).  Therefore, a distribution made to such an alternate                
          payee under a QDRO will be taxable to that alternate payee, and             
          not to the plan participant, because section 402(e)(1)(A) treats            
          the alternate payee as the distributee.                                     
               As originally enacted, the QDRO rules did not affect                   
          governmental plans.  See H. Rept. 101-247, 1443 (1989).  In 1989,           
          however, Congress amended the tax rules relating to governmental            
          plans to conform them to the qualified plans discussed above,               
          applying the QDRO rules to distributions from governmental plans.           
          Omnibus Budget Reconciliation Act of 1989 (OBRA), Pub. L. 101-              
          239, sec. 7841(a)(2), 103 Stat. 2427-2428.                                  
               Section 414(p)(11) is applicable to transfers of marital               
          interests after the date of enactment of OBRA, December 19, 1989,           






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