QDRO To an AP eligible for rollover

[Guest Powers]

I am having one of those days where I can't remember or find the documentation that I am looking for. Quick, basic question: Can an alternate Payee of a QDRO roll her monies into a IRA without any adverse tax penalties?

[QDROphile]

Yes, if the alternate payee is a spouse or former spouse of the plan participant. But once the amount is rolled over, withdrawal before age 59 1/2 will be subject to the early withdrawal penalty unless an exception applies. Distribution from the plan is not subject to the early withdrawal penalty. Depending on when the alternate payee expects to need spending money, it might not be a good idea to roll over funds from the qualified plan.