Dividing retirement plans like the The One 401(k) Plan from Neocoil, LLC in a divorce isn’t as straightforward as splitting a bank account. 401(k) plans come with their own rules, and it takes a properly written Qualified Domestic Relations Order (QDRO) to divide them legally. If you or your spouse participates in the The One 401(k) Plan, it’s crucial to get the details right so nothing is lost—or left hanging—during divorce proceedings.
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.
This means you’ll need to gather key identifying information—such as the plan number and EIN—during the QDRO process. Most plan administrators won’t process your QDRO without that, even if you’ve drafted everything else correctly.
Without a QDRO, the plan administrator of the The One 401(k) Plan cannot legally divide the retirement funds. Even if your divorce decree says your ex is entitled to part of your 401(k), only a QDRO gives the plan permission to make that transfer. Otherwise, the participant may be taxed on withdrawals or face penalties for early access.
The employer portion of contributions may not be fully vested at the time of divorce. This is critical. If an ex-spouse is awarded 50% of the “account balance” but some of that isn’t vested, they could end up with less than they expected. A well-written QDRO should account for this by:
If the plan participant has taken out a loan from the The One 401(k) Plan, that loan reduces the account balance—even though it may not be clearly noted in the divorce settlement. The QDRO can include or exclude the loan balance from the amount being divided, but it has to say so explicitly. If not addressed, it can cause major headaches down the line.
Many 401(k) plans, including the The One 401(k) Plan, may have both traditional (pre-tax) and Roth (after-tax) contributions. These two types must be handled separately in a QDRO. The tax treatment changes depending on which type of account the funds come from, so the order must break down the division accordingly.
When drafting a QDRO for a plan like the The One 401(k) Plan, specificity is key. Here are a few things to include:
Failing to address even one of these areas could cause major delays—or worse, loss of benefits.
Once the QDRO is signed by the court, it must be submitted to the plan administrator of the The One 401(k) Plan, which is sponsored by Neocoil, LLC. The administrator will review it to ensure it meets both plan and federal requirements. They may request revisions or offer a sample QDRO that meets their guidelines.
At PeacockQDROs, we handle all of this for you—from preapproval (if the plan offers it) to final approval, including any required back-and-forth with the administrator. You only sign once everything is ready.
Generally, if a spouse receives funds from the The One 401(k) Plan under a QDRO, those funds can be rolled into their own IRA, deferring taxes. But if they take a lump sum withdrawal, they’ll pay ordinary income tax. The 10% early withdrawal penalty is waived when distributions are received through a QDRO if taken by the alternate payee—this is one of the key advantages of using a QDRO.
401(k) QDROs don’t move overnight. Timing depends on several factors, including:
Want to avoid unnecessary delays? Read our article onfive key factors that affect QDRO timing.
Many QDROs get rejected because of avoidable mistakes—ambiguous language, missing plan details, or failure to address Roth accounts. Avoid these pitfalls by reviewing our guide tocommon QDRO mistakes.
Every QDRO is different, and when you’re dealing with a plan like the The One 401(k) Plan from Neocoil, LLC, the stakes are high. It’s not just about getting the numbers right—it’s about understanding how the plan works, how vesting applies, and how tax structures affect the final outcome. That’s exactly what we do every day. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
If you’re ready to move forward, or just want to understand what the process looks like, visit ourQDRO resource page orcontact us directly.
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 The One 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 →
