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to receive all, or a portion of, the benefits payable under a
plan with respect to such participant.
To qualify for the section 72(t)(2)(C) exception to the
additional tax the distribution must be made by the plan
administrator to an alternate payee in response to a QDRO.
Section 414(p) provides certain procedural rules with respect to
domestic relations orders to provide guidance to plan
administrators when making QDRO determinations. “Implicit in
these procedural rules, and in their underlying purpose to
provide rational rules to guide plan administrators, is the
requirement that a domestic relations order be presented to the
plan administrator and adjudged ‘qualified’ before any
distribution is made by the plan to the spouse or former spouse.”
Rodoni v. Commissioner, 105 T.C. 29, 36 (1995).
The New Jersey court entered the divorce judgment with
respect to petitioner and Ms. Bougas. The divorce judgment
waived any right, title, or claim by Ms. Bougas to petitioner’s
IRA account. The divorce judgment relates to marital property
rights of petitioner and Ms. Bougas pursuant to the domestic
relations laws of New Jersey. The divorce judgment is therefore
a domestic relations order under section 414(p)(1)(B).
However, the divorce judgment did not effectively create or
recognize Ms. Bougas’s right as an alternate payee to receive any
portion of petitioner’s IRA, nor did it award Ms. Bougas any
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Last modified: May 25, 2011