Randolph S. Simpson I - Page 6

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          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.                                      

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