Introduction: Why the Humana Retirement Savings Plan Requires Special Attention in Divorce
When going through a divorce, dividing retirement assets can be one of the most complicated steps. If you or your spouse has a 401(k) account under the Humana Retirement Savings Plan, there’s a very specific legal tool you’ll need: a Qualified Domestic Relations Order, or QDRO.
Unlike ordinary property splits, dividing a 401(k) requires careful coordination with the plan administrator and compliance with both federal retirement law (ERISA) and the plan’s unique requirements. At PeacockQDROs, we regularly work with employees and former spouses dealing with the Humana Retirement Savings Plan and help them complete QDROs from start to finish.
In this article, we’ll walk you through the QDRO process specific to the Humana Retirement Savings Plan and explain what divorcing spouses need to know to protect their share of these valuable retirement benefits.
Plan-Specific Details for the Humana Retirement Savings Plan
Here are the key facts you need to know about the plan before preparing a QDRO:
- Plan Name: Humana Retirement Savings Plan
- Sponsor: Humana Inc.
- Plan Address: 20250624094021NAL0006688481004
- Plan Dates: 2024-01-01 to 2024-12-31 (active plan year)
- Original Effective Date: 1976-03-01
- Plan Number: Unknown
- EIN (Employer Identification Number): Unknown
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Corporation
- Status: Active
While the plan number and EIN are still unknown, you’ll need to obtain those details for the QDRO filing. A properly completed QDRO must include the plan name, sponsor name, plan number, and EIN to avoid delays and rejections from the plan administrator.
What a QDRO Does—and Why You Absolutely Need One
A QDRO is a court order that tells the Humana Retirement Savings Plan administrator to divide the account and pay a portion to the non-employee spouse (called the “alternate payee”). Without an approved and accepted QDRO, the plan is legally prohibited from splitting the benefits—no matter what your divorce decree says.
Divorcing couples often think a marital settlement agreement is enough. It’s not. A QDRO is the only way to legally divide a 401(k) like the one offered by Humana Inc.
Key Issues When Dividing a 401(k) Like the Humana Retirement Savings Plan
Employee and Employer Contributions
In most divorces, the couple agrees to divide the marital portion of the 401(k) evenly. That typically includes:
- Employee contributions made during the marriage
- Employer matching or profit-sharing contributions, to the extent they’ve vested during the marriage
A well-drafted QDRO will specify whether gains and losses apply, how the marital portion is calculated, and whether the split applies to vested funds only or also includes unvested amounts if/when they vest in the future.
Vesting Schedules and Forfeitures
Like many 401(k) plans in the corporate world, the Humana Retirement Savings Plan likely includes a vesting schedule for employer contributions. That means some of the employer-funded portion might not be fully “owned” by the employee spouse at the time of divorce.
If you’re the alternate payee (the non-employee spouse), your share can only include vested amounts. However, carefully crafted QDRO language can allow you to receive your share of currently unvested amounts if they vest later. Be sure your attorney includes that possibility if appropriate.
Differentiating Between Roth and Traditional 401(k) Accounts
The Humana Retirement Savings Plan may allow employees to make both traditional (pre-tax) and Roth (post-tax) contributions. A good QDRO must specify how each component of the account is to be divided.
Roth portions can’t be treated the same way as traditional ones because of tax consequences. At PeacockQDROs, we ensure the order makes a clear tax distinction—otherwise, the alternate payee could end up with serious unintended tax consequences after the transfer.
Outstanding Plan Loans
If the employee spouse has a loan from their 401(k), it’s important to understand:
- Loans reduce the account balance available for division
- The QDRO can allocate responsibility for the loan, but most plans do not allow an alternate payee to assume the debt
- If not addressed, the alternate payee might receive a smaller share than expected
We always inquire about outstanding loans before drafting a QDRO to ensure the order accurately reflects the true value being divided.
Timing and Execution: How the QDRO Process Works
Working through the steps of a proper QDRO for the Humana Retirement Savings Plan requires coordination, patience, and precision. Here’s how the process generally works:
- Step 1: Obtain all plan documents, including the summary plan description (SPD)
- Step 2: Draft the QDRO using language that complies with both ERISA and the Humana Retirement Savings Plan’s own rules
- Step 3: Submit the draft QDRO for preapproval (if allowed by the plan administrator)
- Step 4: Get the QDRO signed by the court after both parties agree on terms
- Step 5: Send the signed order to the plan for final approval and processing
Some plans, including many corporate-sponsored plans like those from Humana Inc., require preapproval of the draft QDRO before it can be filed in court. This step helps avoid costly delays and rejections after filing.
To understand which timeline might apply to your QDRO, review our guide: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Why You Shouldn’t DIY a QDRO—Especially for This Plan
Many people underestimate the complexity of QDROs, especially when dealing with a large corporation-sponsored 401(k) like the Humana Retirement Savings Plan. Each element—loans, vesting, Roth vs. traditional, contribution types—adds a layer of potential risk if you draft it incorrectly.
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 also maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Avoid common missteps by reviewing this resource: Common QDRO Mistakes.
Protecting Your Share of the Humana Retirement Savings Plan
If you’re the alternate payee spouse, be sure your QDRO includes:
- Clear division percentage or dollar amount
- Straightforward instructions on whether you’re receiving Roth, traditional, or both types of funds
- Instructions to assign gains/losses on your share from the division date to the date of distribution
- Contingency language in case of the employee’s death before the QDRO is processed
Protecting your retirement future starts with attention to detail and a QDRO that meets all plan-specific requirements.
Next Steps if You’re Dividing the Humana Retirement Savings Plan
Before you proceed with your divorce or finalize asset division, make sure you’ve gathered all necessary documents for the Humana Retirement Savings Plan, including the most recent account statement and summary plan description. Then, connect with a QDRO professional who understands the complexity of 401(k) plans.
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 Humana Retirement Savings 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.