Introduction
Dividing a 401(k) plan like the Dxc Technology Matched Asset Plan in a divorce can be one of the most financially significant actions you’ll take. It requires a specific type of court order known as a Qualified Domestic Relations Order (QDRO) to ensure the division is legal, enforceable, and accepted by the plan administrator. At PeacockQDROs, we’ve seen far too many couples struggle with QDROs long after the divorce is finalized—often because their lawyer didn’t fully understand the intricacies of the retirement plan being divided. If your plan is with the Dxc Technology Matched Asset Plan, this article is here to walk you through your options and help you avoid common pitfalls.
What Is a QDRO?
A Qualified Domestic Relations Order or QDRO is a court-issued order that instructs a retirement plan to divide benefits between a plan participant (usually the employee) and their former spouse (the alternate payee). Without a QDRO, even if your divorce decree says you’re entitled to part of a retirement account, the plan administrator cannot legally divide it.
For employer-sponsored 401(k) plans like the Dxc Technology Matched Asset Plan, a QDRO is mandatory for any division of retirement assets. QDROs must meet both federal requirements under ERISA and the specific rules of the retirement plan in question.
Plan-Specific Details for the Dxc Technology Matched Asset Plan
- Plan Name: Dxc Technology Matched Asset Plan
- Sponsor: Dxc technology company
- Address: 20408 Bashan Drive
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Plan Number: Unknown
- EIN: Unknown
- Status: Active
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Business Entity
Although plan number and EIN are currently unknown, both will be required to draft and process the QDRO. PeacockQDROs can typically obtain this information directly from the plan administrator once you retain us to handle the order.
Key Issues When Dividing the Dxc Technology Matched Asset Plan
Not all 401(k) plans are created equally. One reason clients choose PeacockQDROs is our experience dealing with plans like the Dxc Technology Matched Asset Plan, which often include features like multiple account types, vesting schedules, and outstanding loans. Here’s what to watch for:
Employee and Employer Contributions
401(k) plans usually include both employee contributions (fully vested from the start) and employer matching contributions (which may be subject to a vesting schedule). It’s important the QDRO clearly spells out which types of funds are being divided.
For example, if the alternate payee is receiving 50% of the participant’s account, is that 50% of only the vested balance? Or are you including the non-vested employer match based on the date of separation? These distinctions must be made clear in the QDRO language.
Vesting Schedules and Forfeitures
Unvested employer contributions can create confusion during a QDRO. If the participant leaves the company before becoming fully vested, a portion of the employer match may be forfeited. Your QDRO should address how to treat potential forfeitures—should the alternate payee benefit from any future vesting?
At PeacockQDROs, we draft language that’s as protective as possible of the alternate payee’s share but still compliant with plan rules. We strongly recommend confirming the vesting schedule with the Dxc technology company’s HR or benefits provider.
Loans and Outstanding Balances
If the Dxc Technology Matched Asset Plan contains an outstanding loan, you’ll need to decide how that will impact the division. Most plan administrators will subtract any outstanding loan from the participant’s balance before calculating the alternate payee’s share, unless the QDRO states otherwise.
Make sure your QDRO specifies whether the loan balance should be excluded from the marital division, or included and attributed entirely to the participant. Without clarity, you risk an unintended shift in liability or loss to one party.
Traditional vs. Roth Accounts
Many 401(k) plans now include Roth subaccounts. Distributions from Roth accounts are tax-free, unlike traditional accounts, which are taxed upon withdrawal. The QDRO must clearly divide each account type separately.
For example, the alternate payee might receive 50% of the traditional 401(k) balance and 100% of the Roth subaccount. Or you might specify a flat dollar amount from Roth only. Get this right during drafting—if you don’t, the administrator may process the order incorrectly or reject it outright.
Timing and Approval Process
The approval process for QDROs can take weeks to months depending on several factors. The Dxc Technology Matched Asset Plan may require pre-approval before submitting the signed QDRO to the court. After court filing, the order must be forwarded to the plan administrator for final implementation. To learn more about what impacts timing, check out our article on how long it takes to get a QDRO done.
Common QDRO Mistakes to Avoid
Drafting mistakes can delay the process or cost you money. We strongly urge you to read our guide on common QDRO mistakes. Here are a few related to the Dxc Technology Matched Asset Plan:
- Failing to identify Roth vs. traditional balances
- Ignoring the vesting status of employer contributions
- Failing to address loans and how they impact the balance
- Using incorrect or incomplete plan information (missing EIN or Plan Number)
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. Most importantly, we understand retirement plans like the Dxc Technology Matched Asset Plan and know what language will actually be approved and implemented by the administrator.
If you’re ready to begin, visit our QDRO Resources section or reach out to us directly.
If Your Divorce Is in a State We Serve
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 Dxc Technology Matched Asset 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.