Introduction
Dividing retirement assets in a divorce isn’t just about splitting numbers—it’s about getting it done right so both parties walk away with what they’re legally entitled to. For employees or former spouses tied to Lowe’s’s companies, Inc., that often means dealing with the Lowe’s 401(k) Plan. This article will walk you through how to divide the Lowe’s 401(k) Plan using a Qualified Domestic Relations Order (QDRO). I’ll flag key issues particular to 401(k) plans like employer contributions, loan balances, Roth vs. traditional accounts, and vesting schedules—because overlooking even one of these details can delay or destroy your claim.
What is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order (QDRO) is a special legal order that instructs the plan administrator of a workplace retirement plan—like the Lowe’s 401(k) Plan—to divide the account in divorce. Without it, the plan won’t pay benefits to a former spouse, even if a divorce decree says they’re entitled. If you’re divorcing someone with this plan, or you’re the employee participant yourself, you need a QDRO to legally split the account and protect your benefits.
Plan-Specific Details for the Lowe’s 401(k) Plan
Here’s what we know about this particular retirement plan:
- Plan Name: Lowe’s 401(k) Plan
- Sponsor: Lowe’s’s companies, Inc.
- Plan Type: 401(k) defined contribution plan
- Plan Sponsor Address: 1000 LOWES BLVD
- Effective Date: Unknown
- Status: Active
- Industry: Retail Trade
- Organization Type: Corporation
- EIN: Unknown (required for QDRO paperwork—your attorney will work with the administrator to obtain this)
- Plan Number: Unknown (also needed for QDRO documents)
- Plan Year and Participants: Not publicly listed
QDROs for 401(k) plans like this are governed by ERISA and need to follow not only federal guidelines but also the specific administrative procedures set by Lowe’s’s companies, Inc.
How QDROs Work With the Lowe’s 401(k) Plan
The Lowe’s 401(k) Plan, like most defined contribution plans, holds an employee’s individual retirement account. The value of the account changes over time based on contributions and investment performance. When a QDRO is submitted and approved, it tells the plan administrator how to split this account between the plan participant and their alternate payee (usually the ex-spouse).
What Can Be Divided?
With a QDRO, you can divide:
- Employee salary deferrals (pre-tax and Roth)
- Employer matching or profit-sharing contributions
- Investment earnings and losses
The key is that everything is pro-rated to the valuation date set in the divorce agreement or QDRO—often the date of separation, filing, or another mutually agreed date.
Key Issues Specific to 401(k) Plans Like Lowe’s 401(k) Plan
1. Vesting of Employer Contributions
401(k) plans often have a vesting schedule governing employer contributions. That means the participant might not have full ownership of the employer’s contributions unless they’ve worked at Lowe’s’s companies, Inc. for a certain number of years. Only vested amounts can be assigned in a QDRO. If the participant leaves before reaching full vesting, unvested balances are generally forfeited.
For divorcing spouses, it’s critical to confirm what percentage of the employer contributions are vested at the time of division. Your QDRO should not assume full vesting unless that’s been confirmed.
2. Loan Balances
If the participant has taken a loan from their Lowe’s 401(k) Plan, that loan affects the account value. Most plans will not reduce the alternate payee’s share due to an outstanding loan unless it’s addressed in the QDRO. So, if the account balance is $100,000 but $20,000 has been taken as a loan, your attorney needs to specify whether division is based on the gross ($100,000) or net balance ($80,000).
Make sure your QDRO spells this out—it impacts how much each party receives.
3. Roth vs. Traditional Balances
The Lowe’s 401(k) Plan likely contains both traditional (pre-tax) and Roth (after-tax) contributions. The QDRO needs to instruct the plan how to divide each type of contribution. If an alternate payee receives a Roth portion, it’s critical that the rollover be handled correctly to preserve the Roth tax treatment. Your attorney should double-check whether each portion qualifies for direct rollover and how to split them accurately in the order.
Avoiding Common QDRO Mistakes
Dividing a plan like Lowe’s 401(k) Plan isn’t complicated if you know what you’re doing, but there are some frequent traps:
- Assuming vesting is 100%—it often isn’t
- Forgetting about loan offsets and how to allocate loan obligations
- Bungling Roth vs. traditional account splits
- Not specifying the correct distribution form (i.e., immediate rollover vs. deferred distribution)
You can learn more about these mistakes in our article: Common QDRO Mistakes.
What Information You’ll Need
To draft a valid QDRO for the Lowe’s 401(k) Plan, be ready to provide:
- The participant’s and alternate payee’s full legal names, addresses, and SSNs (filed confidentially)
- The formal name of the plan: Lowe’s 401(k) Plan
- The plan sponsor: Lowe’s’s companies, Inc.
- The EIN and plan number (usually obtainable via HR or plan administrator)
- The specific dollar amount or percentage to award
- The valuation date (e.g., date of separation or division)
Why Choose 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. From understanding Roth tax traps to clarifying loan issues, we know the specific ins and outs of dividing complex 401(k) plans like the Lowe’s 401(k) Plan.
If your case involves the Lowe’s 401(k) Plan, we’ll make sure the QDRO is compliant with plan rules, tax law, and court requirements. We’ll even liaise directly with Lowe’s’s companies, Inc. to ensure timing and compliance.
Not sure how long the QDRO process takes? Check out our guide on 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Contact Us Today
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 Lowe’s 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.