When going through a divorce, dividing retirement assets like the Big Lots Savings Plan can be a critically important and legally complex process. If either you or your spouse has an account in this 401(k) plan sponsored by Big lots, Inc., you’ll likely need a Qualified Domestic Relations Order (QDRO) to divide the assets properly. As QDRO attorneys who have managed many orders from start to finish, we’re here to walk you through what makes dividing the Big Lots Savings Plan unique and what you need to know to avoid costly mistakes.
Here’s what you need to know about the Big Lots Savings Plan before starting the QDRO process:
A QDRO is a legal order that allows the division of a retirement plan between divorcing spouses without triggering early withdrawal penalties or tax consequences. For the Big Lots Savings Plan, which is a 401(k) account, this means allocating a portion of the participant’s vested balance to the non-employee spouse (referred to as the “alternate payee”).
The Big Lots Savings Plan is a 401(k), which means participants may have multiple types of funds in their account: pre-tax (traditional), Roth (after-tax), and possibly employer matching or profit-sharing contributions. Each of these account components must be addressed correctly in the QDRO.
A typical QDRO for this plan will distinguish between employee deferral contributions and employer matching contributions. The employee’s portion is fully vested, but the employer’s may be subject to a vesting schedule. If the participant has not met those vesting requirements, some of the employer’s contributions could be forfeited.
401(k) plans like the Big Lots Savings Plan often use a graded or cliff vesting schedule for employer contributions. For example, an employee might vest 20% per year and be 100% vested after five years. If only three years of service have passed, only 60% of employer contributions are considered vested—and only those can be divided by QDRO. The rest will eventually be forfeited. Your QDRO should reflect only vested balances unless both parties agree to handle unvested balances differently.
If the participant has an outstanding loan from the Big Lots Savings Plan, the QDRO should address this directly. Options include:
Note that the plan administrator often reduces the transfer amount by the loan balance unless specified otherwise in the QDRO.
Another important consideration is the distinction between traditional (pre-tax) balances and Roth (after-tax) balances. A good QDRO will allocate each type proportionally, ensuring proper tax treatment. For example, if 80% of the account is pre-tax and 20% is in Roth funds, the alternate payee should receive distributions reflecting that same ratio—unless the parties agree otherwise.
While the Big Lots Savings Plan does not publish a public QDRO form, our experience with similar corporate 401(k) plans tells us the process typically follows these steps:
At PeacockQDROs, we don’t leave you guessing after we prepare the document. From drafting to submitting to the plan—plus following up to ensure processing—we handle everything.
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 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. Dividing something as important and complex as a 401(k) should never be left up to guesswork.
From our experience, the most frequent problems we see with QDROs involving corporate 401(k) plans like the Big Lots Savings Plan are:
To avoid these issues—many of which can delay the process by months—read our article onCommon QDRO Mistakes.
Every plan is different, and so is every case. The time it takes to complete a QDRO depends on several factors, including whether the plan requires preapproval and how fast courts process filings. Learn more about the five biggest timing factors here:How Long Does It Take to Get a QDRO?.
To properly draft a QDRO for the Big Lots Savings Plan, we’ll typically need the following:
If you don’t have all this info yet, don’t worry. We can help guide you through collecting it and advise on the best way to structure your division.
Whether you’re just starting your divorce or finalizing an agreement, it’s never too early—or too late—to get the QDRO right. Mistakes can lead to benefit delays, denied orders, or even tax penalties. That’s why it’s worth working with professionals who do much more than just draft documents.
For more information on dividing retirement assets through QDROs, check out our full range of services:QDRO Services.
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 Big Lots Savings 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 →
