Retirement accounts like the Ameris Bancorp 401(k) Profit Sharing Plan are often one of the most valuable assets in a marriage—right behind the family home. When a couple divorces, dividing that plan isn’t as simple as splitting it down the middle. A Qualified Domestic Relations Order (QDRO) is usually required to legally assign a portion of the retirement account to the non-employee spouse. At PeacockQDROs, we’ve helped many clients navigate this process. In this article, we’ll explain what divorcing spouses need to know about the QDRO and how it applies to the Ameris Bancorp 401(k) Profit Sharing Plan.
Every QDRO must be tailored to the specific plan it addresses. Here’s the known information for this retirement plan:
While some plan-specific data is missing, we’re familiar with profit-sharing 401(k) plans like this one. Understanding how such a plan typically operates—especially in a corporate structure like a business entity in the general business industry—helps guide how the QDRO should be drafted.
A Qualified Domestic Relations Order (QDRO) is a court order that allows retirement plan administrators to legally divide retirement benefits following a divorce. Without a QDRO, any transfer of funds from a 401(k) may be treated as an early withdrawal, triggering taxes and penalties. With it, the transfer is treated as a division of marital assets. The QDRO must meet both IRS and plan-specific rules.
The Ameris Bancorp 401(k) Profit Sharing Plan features both employee deferrals and employer profit-sharing contributions. For QDRO purposes, these two funding sources must be treated correctly:
This is where many people get tripped up. If the participant isn’t fully vested in the employer contributions—for example, if they’ve only worked at Ameris for a few years—some of those funds may not be distributable to the former spouse.
Vesting schedules are crucial in 401(k) plans. If only a portion of the account is vested, the unvested balance can’t be awarded under a QDRO. That portion is generally forfeited if the participant leaves the employer prior to full vesting.
In QDRO drafting, we often include language to note that the alternate payee is entitled only to the vested portion of the account as of the date of division, and that unvested portions are excluded unless otherwise agreed by both parties.
Loans are common in 401(k) plans—especially plans like the Ameris Bancorp 401(k) Profit Sharing Plan. Here’s what spouses and drafters must consider:
We often include loan-specific provisions in QDROs to avoid misunderstandings, especially around whether the loan is being accounted for at full value or net of unpaid balances.
Many modern 401(k) plans—including the Ameris Bancorp 401(k) Profit Sharing Plan—offer both traditional pre-tax accounts and Roth after-tax accounts. Dividing these accounts requires special care:
At PeacockQDROs, we make sure your QDRO clearly distinguishes between these account types to prevent problems with plan administration or IRS reporting later.
At PeacockQDROs, we’ve completed many QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the next steps. We handle everything:
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. That’s what sets us apart from firms that only prepare the document and hand it off to you.
Want to learn how long your QDRO might take? Check out our guide on the5 key factors that affect QDRO timelines.
There are a few frequent mistakes that can delay or derail the QDRO process:
To avoid these issues, review our guide oncommon QDRO mistakes and how to avoid them.
Yes. While those details aren’t currently available for the Ameris Bancorp 401(k) Profit Sharing Plan, they are required for final plan administrator submission. We help clients track down these codes during drafting.
Yes, most QDROs for 401(k) plans allow the alternate payee to roll funds into their own retirement plan without triggering taxes.
Not if funds are rolled into an IRA properly. Direct distributions, however, are taxable to the recipient.
If your divorce involves the Ameris Bancorp 401(k) Profit Sharing Plan, you don’t want to guess your way through the QDRO process. This is a complex plan with multiple moving parts—employee and employer contributions, vesting schedules, loans, and Roth balances.
Work with a firm that’s done it all.Learn more about QDROs orcontact us today.
If your divorce was in California, New York, New Jersey, Connecticut, Kansas, Missouri, Iowa, or North Dakota, and you have questions about qualified domestic relations orders or dividing retirement assets like the Ameris Bancorp 401(k) Profit Sharing Plan, contact PeacockQDROs. We focus on QDROs and have successfully processed many orders from start to finish.
Get the answers you need—explore ourQDRO resources orreach out for personalized help if you’re in one of our service states.
Willie has handled hundreds of QDROs, been named as a stipulated or court-appointed expert in hundreds of orders, testified as an expert witness on QDROs and state government pension survivor benefits, and taught CLEs on QDROs, legal ethics, and military pensions. He is a three-time ABA award-winning legal author and secured a victory before the North Dakota Supreme Court. Full bio →
