If you or your spouse has a retirement account under the Nanostring Technologies Inc.. 401(k) Plan and you’re going through a divorce, a Qualified Domestic Relations Order (QDRO) is the established legal method to divide the account without incurring penalties or triggering taxes. But QDROs for 401(k) plans aren’t one-size-fits-all. Each plan has its own rules and nuances—and the Nanostring Technologies Inc.. 401(k) Plan is no exception.
We’ve helped many people process QDROs correctly, from first draft to final follow-through. That makes all the difference, especially when you’re dealing with the specific features and quirks of an employer-sponsored retirement plan like this one.
A QDRO (Qualified Domestic Relations Order) is a legal order that allows retirement plans like 401(k)s to be divided between divorcing spouses. It’s the only way to transfer a portion of a retirement account to an ex-spouse (called the “alternate payee”) without early withdrawal penalties or tax consequences.
For the Nanostring Technologies Inc.. 401(k) Plan, a properly prepared and approved QDRO enables the plan administrator to allocate a percentage or specific dollar amount of the participant’s account to the alternate payee while complying with federal law and the plan rules.
To understand what you’re dealing with, here are the known details of the plan involved:
Because the plan number and EIN are not specified here, you’ll need to obtain this information during the QDRO preparation process. These identifiers are required in the QDRO document submitted to the court and the plan administrator.
401(k) plans are governed by ERISA (the Employee Retirement Income Security Act) and have several components that need careful review when drafting a QDRO. Here’s what should be considered:
The account in the Nanostring Technologies Inc.. 401(k) Plan consists of both employee deferrals and employer contributions. A QDRO can address both types—so long as the funds are vested. It’s essential to understand:
Many employer 401(k) plans use vesting schedules for employer contributions. If your soon-to-be-ex only worked at Nanostring technologies Inc.. 401(k) plan for a few years, some of their employer contributions may still be unvested—and therefore, not subject to division. Any unvested amounts will usually revert back to the plan if the participant separates from the company before they are fully vested.
Be sure to establish the participant’s vested balance as of the intended date of division—it can significantly impact the amount awarded to the alternate payee.
If the participant has taken out a loan from their Nanostring Technologies Inc.. 401(k) Plan, it reduces the distributable account balance. A common mistake is ignoring loans in the calculation, which results in the alternate payee being allocated more than is currently available.
The QDRO should specifically address whether:
Failure to handle this properly can create confusion and unnecessary delay.
The Nanostring Technologies Inc.. 401(k) Plan may include both traditional pretax contributions and Roth after-tax contributions. Splitting these types of accounts comes with different tax considerations:
The QDRO should clearly state how each account type is to be divided and whether the funds will be rolled over into like-type accounts (e.g., Roth to Roth).
Here’s what you need to do to divide an account in this plan properly:
You’ll need the plan number, EIN, and a copy of the plan’s QDRO procedures or sample QDRO language. This typically involves contacting the HR or benefits department at Nanostring technologies Inc.. 401(k) plan directly.
Drafting should be precise. Errors in dates, percentages, or account type references can delay processing for months. That’s why it’s important to work with professionals who understand what the plan administrator expects.
Some plans will review a draft QDRO before you submit it to the court. This isn’t mandatory, but we highly recommend it if the plan allows. A preapproved order eliminates surprises down the road.
Once the order is approved by the court, it must be submitted to the plan administrator for final processing. At this point, the plan may request additional forms (like a distribution election or rollover form).
Timing varies, so see our article on5 factors that determine how long a QDRO takes.
The most frequent mistakes we see with QDROs for 401(k) plans like this one include:
See more onthe most common QDRO mistakes we fix.
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. Get started by visiting ourQDRO services page or use thecontact form to ask us about your specific situation.
Handling the Nanostring Technologies Inc.. 401(k) Plan in divorce requires attention to detail—from vesting schedules to contribution types to loan balances. Missing these details can cost you time and money. A QDRO done the right way protects both parties and ensures the division is enforceable and timely.
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 Nanostring Technologies Inc.. 401(k) 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 →
