- 13 -
Court rejected the taxpayer’s argument that the term
“distributee” in section 402(a) means the owner of an interest in
a qualified pension plan. Id. at 66.
21(...continued)
nally enacted as sec. 402(a)(9)), which governs the taxation of
distributions or payments that are made pursuant to a QDRO. As
discussed below, when Congress enacted the QDRO provisions in
1984, those provisions did not apply to governmental plans that
are not subject to the spendthrift provisions of sec. 401(a)(13).
See secs. 414(p)(9), 401(a); sec. 1.401(a)-13(a), Income Tax
Regs.; see also H. Rept. 101-247, at 1443 (1989).
The legislative history of the QDRO provisions enacted in
1984 states in pertinent part:
Generally, under present law, benefits under a
pension, profit-sharing, or stock bonus plan (pension
plan) are subject to prohibitions against assignment or
alienation (spendthrift provisions. [sic]) * * *
Several cases have arisen in which courts have
been required to determine whether the * * * spend-
thrift provisions apply to family support obligations
(e.g., alimony, separate maintenance, and child support
obligations). * * * There is a divergence of opinion
among [those courts] * * *.
* * * * * * *
Reasons for Change
The committee believes that the spendthrift rules
should be clarified by creating a limited exception
that permits benefits under a pension, etc., plan to be
divided under certain circumstances. In order to
provide rational rules for plan administers [sic], the
committee believes it is necessary to establish guide-
lines for determining whether the exception to the
spendthrift rules applies. * * *
S. Rept. 98-575, at 18-19 (1984), 1984-2 C.B. 447, 456.
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