| qualified domestic relations order (qdro) |
A domestic relations order is a judgment, decree or order (including approval of property settlement agreement) that (1) relates to the provision of child support, alimony payments or marital property rights to a spouse, former spouse, child or other dependent of participants and (2) is made pursuant to a state domestic relations law (including community property law). A domestic relations order is a qualified domestic relations order if it creates or recognizes the existence of an alternate payee’s right, or assigns to an alternate payee the right, to receive all or a portion of the benefits payable to a participant under a plan; specifies required information and does not alter the amount or form of plan benefits. An alternate payee is a spouse, former spouse, child or other dependent of a participant who is recognized by the domestic relations order as having a right to receive all, or a portion of, the benefits under a plan with respect to the participant. |
| qualified plan (pension or profit sharing) |
A plan that meets certain statutory requirements. Such plans receive tax advantages for the employer and employees. To qualify, a plan must not discriminate in favor of officers, shareholders, supervisory personnel, or highly compensated employees. It may be either a defined-benefit or a defined-contribution plan. |
