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Divorce Terminology
A QRDO is a Qualified Domestic Relations Order. This is a court order that tells a retirement plan administrator how to distribute retirement accounts to each spouse. A QRDO can be used to divide 401Ks, pensions, profit-sharing plans, annuities and other types of retirement accounts. Simply put, a QRDO is a divorce court’s way of telling a retirement plan administrator how to divide the retirement account in a divorce.