QDRO (Qualified Domestic Relations Order)
RetirementGlossary term
Definition
A court order used during divorce to divide retirement plan assets between spouses. It allows a former spouse to receive a portion of the participant's retirement benefits without triggering the early withdrawal penalty.
Related terms
- Defined Benefit PlanA retirement plan where the employer guarantees a specific monthly benefit at retirement based on a formula using salary and years of service. Traditional pensions are the most common type. The employer bears the investment risk.
- 401(k)A tax-advantaged retirement savings plan offered by employers that allows employees to contribute a portion of their salary before taxes. Many employers offer matching contributions up to a certain percentage.
Get advice that uses your real numbers
Warren reads your accounts and explains what terms like this mean for your plan. Free to start, no credit card required.