Short YouTube clip in which two speakers define a QDRO (Qualified Domestic Relations Order), explain its traditional use to transfer retirement assets (example: $600,000 in a 401(k)) in divorce property settlements without tax consequences, and discuss whether the QDRO’s alternate-payee language ("spouse, former spouse") allows use while still married.
What is a quadro? What does quadro stand for?
It stands for qualified domestic relations order. So in the divorcing set point, when you have a property settlement after divorce, if the husband has 600,000 in his 401k or the wife has money in her 401k or 403b, it's how to get from one party to the other party without it being a taxable transaction. The Inmart Cuadro has been able to come up with a spousal contract that triggers the same federal statute in order to get access to the forms.
Traditionally this has been a tool used for couples that are in a divorce, right?
Correct.
Did you figure out within the tax code that allows this to be used for couples that are that are actually still married?
I googled the definition of alternate payee, but it said alternate pay is a spouse, comma, former spouse. Well, former spouse is the one that you're divorced from. Spouse is your current spouse.
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