Domestic Relations Orders
A QDRO (Qualified Domestic Relations Order) is a type of DRO (Domestic Relations Order), and these are orders which have been signed by a Judge and which provide instructions to the administrator of a retirement plan as to how to divide the plan.
A QDRO is the term used for a plan that falls under the Employee Retirement Income Security Act of 1974, as amended ("ERISA").
The main purpose of ERISA is to protect employees’ rights under private retirement plans.
A DRO is a general term and applies primarily to retirement plans which fall outside ERISA and which are not private employer plans, such as federal, state and local government plans, or individual plans, such as an Individual Retirement Account.
An order is a QDRO if it meets the requirements of the United States tax code, 26 U.S. Code § 414(p). This statute provides the definition of a QDRO and sets forth the basic requirements of a QDRO.