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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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Last modified: May 25, 2011