Hartley v. Comr., T.C. Memo. 2012-311

(petitioner received distribution from IRA before reaching age 59.5 and asserted that he was not subject to additional 10 percent tax because, in accordance with I.R.C. Sec. 72(t)(2), the distribution was taken to comply with qualified domestic relations order (QDRO) in divorce case; court ruled that to come within exception for QDRO, distribution must be made by plan administrator to alternate payee (spouse, former spouse, child or other dependent) in response to QDRO that recognizes such person as having the right to receive all or a portion of the benefits payable under a plan with respect to the participant; QDRO not created in connection with petitioner's retirement plan and distributions actually made to petitioner rather than alternate payee; exception to 10 percent penalty inapplicable).