A QDRO is a legal order that allows the division of certain retirement benefits in a divorce or legal separation. (Reference: Employee Benefits Security Administration, U.S. Department of Labor)

QDROs are typically needed for qualified plans under ERISA, such as 401(k)s and pension plans. IRAs usually don’t require QDROs. (Reference: Internal Revenue Code Section 414(p)

Processing times vary, but it typically takes 3-6 months from submission to approval. (Reference: American Bar Association, Section of Family Law)

Either party’s attorney can draft the QDRO, or a specialized QDRO professional can be hired. (Reference: American Academy of Matrimonial Lawyers)

QDRO distributions are typically not subject to the 10% early withdrawal penalty, but may still be subject to income tax. (Reference: IRS Publication 575)

Generally, once a QDRO is approved and implemented, it cannot be modified unless both parties agree or there’s a court order. (Reference: Journal of Accountancy, “QDROs: The Division of Retirement Benefits Through Qualified Domestic Relations Orders”)

Without a QDRO, the non-participant spouse may lose their right to a portion of the retirement benefits. (Reference: American Bar Association, “Fundamentals of QDROs”)