There are plenty of complications in drafting the QDRO, but your question seems to be addressed to the actual rollover after the QDRO has been accepted by the plan administrator. Before requesting the direct rollover to the alternate payee’s IRA account, the following must be determined:

1. When the plan will allow the rollover to be done. A QDRO cannot force a plan to offer a rollover to an alternate payee that is not allowed for the participant. In some cases, the rollover may have to wait until the participant separates.
2. Age of the alternate payee is critical because the QDRO penalty exception only applies to distributions directly from the plan. Once the plan is rolled over to an IRA, the age 59.5 penalty exception will apply.
3. If there is any highly appreciated employer shares in the plan, the usual analysis must be done to determine if NUA is viable, and if so what triggering event (alternate payee or participant) will qualify for a qualified LSD.
4. In addition, the usual considerations that would apply to ANY plan rollover must also be considered.

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