Introduction
Dividing retirement assets during a divorce can be one of the more technical and time-sensitive parts of the property settlement. If one or both spouses have a 401(k), then a Qualified Domestic Relations Order (QDRO) is the legal tool that allows those assets to be divided without triggering taxes or penalties. Specifically, when dividing the Bd 401(k) Plan sponsored by Becton, dickinson and company, it’s important to follow the rules that apply to this exact plan and avoid common missteps.
At PeacockQDROs, we’ve helped thousands of clients with QDROs from beginning to end—including court filing, administrator submission, and approvals. In this article, we’ll walk you through what divorcing spouses need to know about dividing the Bd 401(k) Plan using a QDRO.
Plan-Specific Details for the Bd 401(k) Plan
- Plan Name: Bd 401(k) Plan
- Sponsor: Becton, dickinson and company
- Address: 1 BECTON DRIVE
- Dates Associated: 2024-01-01 to 2024-12-31 (Plan period), 1974-07-01 (original start date)
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
Although both the EIN and plan number are currently listed as “Unknown,” these must be confirmed and included in the final QDRO documentation. Most administrators will not process a QDRO unless these fields are accurate. Our team at PeacockQDROs ensures these details are verified and included before anything goes to court.
Why the Bd 401(k) Plan Requires a QDRO
Because the Bd 401(k) Plan is part of a qualified retirement plan under ERISA, state divorce decrees alone are not enough to divide the account. A QDRO is required to legally instruct the plan administrator to split the participant’s 401(k) balance with a former spouse (referred to as the alternate payee), without triggering early withdrawal penalties or tax consequences.
This plan, like most 401(k)s, may include several valuable features, such as employer matching, Roth and traditional contributions, and even loan balances—all of which must be properly addressed in the QDRO.
Key Factors to Address in Your QDRO for the Bd 401(k) Plan
Dividing Employee and Employer Contributions
In the Bd 401(k) Plan, contributions may come from both the employee (through payroll deferrals) and Becton, dickinson and company (via employer match or profit-sharing). During a divorce, you must decide whether to:
- Divide just the employee’s contributions
- Include the employer match (only if vested)
It’s critical that your QDRO clearly states whether the alternate payee gets a share of just the contributions made during marriage or the entire account balance (including post-separation contributions).
Accounting for Vesting Schedules
Employer contributions often follow a vesting schedule—meaning the employee must work a certain number of years before those funds fully belong to them. If your QDRO includes unvested amounts, those might be forfeited if the employee changes jobs too soon, leaving the alternate payee with less than expected. We make sure to disclose and explain these issues to clients before filing their QDRO.
Loan Balances and Their Treatment
401(k) participants may have borrowed against their account. In a QDRO, you need to decide how loan balances are factored in:
- Are loans excluded from the divisible amount?
- Is the alternate payee’s share based on the full account or the value after loans are subtracted?
This decision can significantly affect how much is actually distributed. If you overlook this detail, it could delay approval or result in incorrect division.
Roth vs. Traditional 401(k) Money
The Bd 401(k) Plan may offer both traditional pre-tax and Roth after-tax contributions. Your QDRO should spell out whether the alternate payee is receiving funds from one, both, or proportionally from each. Mishandling this can cause tax complications down the road—something we take great care to clarify in each order.
Drafting and Processing a QDRO: Step-by-Step
1. Determine the Division Method
Most couples choose one of the following division formulas:
- Percentage Method: Alternate payee receives a fixed percentage (e.g., 50%) of the account as of a certain valuation date.
- Dollar Amount Method: Alternate payee receives, say, $150,000.
- Marital Coverture Formula: Used in many community property states to calculate the share based on time worked during the marriage.
2. Confirm Plan-Specific Requirements
Each plan administrator may have slightly different rules. While this particular plan is administered by Becton, dickinson and company, it’s common for them to outsource compliance to a third-party employee benefits firm. We confirm their requirements and obtain pre-approval if needed before a judge ever signs the QDRO.
3. File the Order with the Court
After pre-approval (if applicable), the signed QDRO must be filed in the same court that finalized your divorce. Skipping this step may cause delays or a complete rejection by the plan administrator. At PeacockQDROs, we don’t just hand you a draft—we handle the filing too.
4. Submit the Signed QDRO to the Plan Administrator
Once it’s court-approved, the QDRO is sent to the plan administrator. They’ll process the form and set up a separate account—a rollover IRA or lump sum transfer account—for the alternate payee.
Common QDRO Mistakes to Avoid
Mistakes in QDROs can cost you time, money, and legal headaches. Some of the most common include:
- Forgetting to include loan balance instructions
- Ignoring Roth/traditional distinctions
- Failing to reference plan name exactly—remember, it must say Bd 401(k) Plan, nothing else
- Not confirming the plan’s current EIN or number
- Omitting vesting schedule considerations for employer match
Read more on common QDRO errors we help you avoid.
How Long Does This Take?
Many factors determine QDRO processing time, including how responsive your divorce court and the plan administrator are. On average, a properly drafted and monitored QDRO takes anywhere from 60 to 180 days to complete. We explain all five timeline factors here: QDRO timing factors.
Why Work With PeacockQDROs
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the rest. We handle the drafting, preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only prepare the document and hand it off to you.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Whether you’re dividing the Bd 401(k) Plan or another employer-sponsored account, we can help ensure nothing is overlooked—and your settlement is protected.
Final Thoughts
Dividing the Bd 401(k) Plan through a QDRO doesn’t have to be overwhelming—but it does require precision. From handling loan repayment terms to dividing vested employer contributions and Roth assets, every QDRO must be carefully tailored to the specifics of this plan.
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 Bd 401(k) Plan, contact PeacockQDROs. We specialize in QDROs and have successfully processed thousands of orders from start to finish.
Get the answers you need—explore our QDRO resources or reach out for personalized help if you’re in one of our service states.