- 6 - 4974(c)(1). Petitioner does not dispute that he received a distribution from a qualified plan. However, he contends that his former wife should bear the burden of the 10-percent addition to tax with respect to the $17,900 payment he made to her under the divorce decree. The 10-percent addition to tax does not apply to certain distributions, including those made “to an alternate payee pursuant to a qualified domestic relations order (within the meaning of section 414(p)(1)).” Sec. 72(t)(2)(C). A “domestic relations order” is defined in pertinent part as any judgment that relates to the provision of marital property rights to a spouse, or former spouse, of a participant and is made pursuant to a State domestic relations law. Sec. 414(p)(1)(B). A qualified domestic relations order, or QDRO, is a specific type of domestic relations order that in pertinent part (1) creates an alternate payee’s right to receive all or part of the benefits payable with respect to a participant under a plan, (2) clearly specifies certain facts, and (3) does not alter the amount of the benefits under the plan. Sec. 414(p)(1)(A), (2), and (3). Section 414(p)(8) defines the term “alternate payee” as any spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such participant.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011