Introduction
Dividing retirement benefits like a 401(k) during divorce can be one of the most important—and challenging—financial aspects of the process. If your spouse participates in the Designer Brands Inc. 401(k) Plan, you will need a Qualified Domestic Relations Order (QDRO) to divide those benefits legally and tax-efficiently. A properly drafted QDRO ensures that both parties receive their fair share, without triggering taxes or penalties. At PeacockQDROs, we specialize in getting these orders done the right way, from start to finish.
Why a QDRO Is Required to Divide the Designer Brands Inc. 401(k) Plan
A QDRO is a legal order issued by a state court in connection with divorce or legal separation that directs a retirement plan to divide benefits between a plan participant and their former spouse (known as an “alternate payee”). For the Designer Brands Inc. 401(k) Plan, this is not optional. Without a QDRO, the plan administrator cannot legally pay a portion of the retirement account to the non-employee spouse.
Importantly, a QDRO also allows this division to occur without early withdrawal penalties and with tax consequences assigned directly to the recipient spouse.
Plan-Specific Details for the Designer Brands Inc. 401(k) Plan
- Plan Name: Designer Brands Inc. 401(k) Plan
- Sponsor: Designer brands Inc. 401(k) plan
- Address: 810 DSW DRIVE, as of 2024
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
This retirement plan falls under the category of a corporate-sponsored 401(k), which involves both employee contributions and potential employer matching contributions, often subject to a vesting schedule.
How Contributions Are Divided in the Designer Brands Inc. 401(k) Plan
Employee Contributions
Employee contributions to the 401(k) are always 100% vested, which means they belong entirely to the plan participant—even if they are still employed. These funds are generally easy to divide with a percentage or a fixed-dollar allocation in the QDRO.
Employer Contributions and Vesting
This is where things get trickier. Employer contributions—such as match or profit-sharing funds—may be subject to a vesting schedule based on years of service. If your spouse is not fully vested at the time the QDRO is issued, the unvested portion may be forfeited and cannot be awarded to the alternate payee.
A QDRO for the Designer Brands Inc. 401(k) Plan should specify whether it awards a portion only of the vested funds or makes a claim to future vesting. This is where precise language really matters.
What About Plan Loans?
If your spouse took out a loan from their 401(k), that balance is not available for division. It’s essentially a temporary withdrawal from their account, and some QDROs choose to offset the loan when dividing the remaining balance—others don’t. There’s no “right” way, but the QDRO should clearly state how loans are handled to avoid disputes later.
Roth vs. Traditional 401(k) Accounts
The Designer Brands Inc. 401(k) Plan may include both pre-tax (traditional) and after-tax (Roth) account balances. These must be treated separately in the QDRO. Pre-tax funds will be taxed on distribution to the alternate payee unless rolled over, while Roth funds are not taxed if properly handled.
We always recommend including language in the QDRO to ensure that each account type is divided appropriately and remains in its respective tax status. Failing to do so could trigger taxable distributions or even disqualify a Roth account transfer.
Avoiding Common Mistakes in Designer Brands Inc. 401(k) Plan QDROs
Many QDROs get kicked back by plan administrators because they lack critical information or are unclear in instructions. For the Designer Brands Inc. 401(k) Plan, watch out for these common issues:
- Failing to specify vested vs. non-vested employer contributions
- Not accounting for outstanding loan balances
- Combining Roth and traditional account divisions without distinction
- Omitting language the plan administrator requires
We’ve outlined other pitfalls on our Common QDRO Mistakes page.
Timing Considerations
Getting a QDRO in place early is smart. The longer you wait, the more complicated things can become—especially if your spouse retires, withdraws funds, or changes jobs. Need a sense of how long the process might take? Check out our article on the 5 Factors That Determine QDRO Timelines.
The PeacockQDROs Advantage
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:
- Plan document review
- Preapproval with the Designer brands Inc. 401(k) plan (if allowed)
- Court filing coordination
- Submission to the plan administrator
- Follow-up until the order is accepted and processed
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. If you’re dealing with the Designer Brands Inc. 401(k) Plan during a divorce, we’re the team you want on your side.
Learn more about our QDRO services here.
What You Need to Get Started
To draft a qualified order for the Designer Brands Inc. 401(k) Plan, you’ll need to gather some documentation:
- Final judgment or divorce decree
- Plan statement from the Designer Brands Inc. 401(k) Plan
- Last four digits of both parties’ Social Security Numbers (for identification only)
- Marital status and division date (usually the separation or divorce date)
Even though the plan number and EIN are unknown in the public record, it’s best to try obtaining that directly from the plan participant’s summary plan description or HR department to avoid processing delays.
Working with a QDRO Specialist Is Essential
401(k) plans are not one-size-fits-all. Even within the same sponsor, plans can vary year to year. The Designer Brands Inc. 401(k) Plan may have unique quirks or procedural requirements that your local family law attorney might not know. That’s why working with PeacockQDROs makes a difference.
If you do decide to use your own attorney for the QDRO, make sure they understand how the Designer brands Inc. 401(k) plan works and that they’ve handled these kinds of orders before. If they haven’t, you risk costly delays—or worse, losing access to money you’re entitled to.
Conclusion and Call to Action
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 Designer Brands Inc. 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.