Introduction
Dividing retirement assets during a divorce can be overwhelming, especially when it involves employer-sponsored retirement plans like The Progressive 401(k) Plan. If you or your spouse are current or former employees of The progressive corporation & its participating subsidiaries, you’ll likely need what’s called a Qualified Domestic Relations Order (QDRO) to correctly divide retirement funds.
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft legal language—we take your QDRO through preapproval, court filing, final plan submission, and follow-up until it’s done. This article breaks down everything you need to know about dividing The Progressive 401(k) Plan through a QDRO.
What Is a QDRO and Why Do You Need One?
A QDRO is a court order that allows a retirement plan administrator to split a participant’s account between spouses after a divorce. Without a QDRO, even if your divorce judgment says you’re entitled to part of a 401(k), the plan can’t legally pay you.
For The Progressive 401(k) Plan, a QDRO ensures that both the participant and the alternate payee (usually the ex-spouse) get their fair share—with protection from taxes and penalties when processed properly.
Plan-Specific Details for the The Progressive 401(k) Plan
- Plan Name: The Progressive 401(k) Plan
- Sponsor: The progressive corporation & its participating subsidiaries
- Address: 300 N Commons Blvd W91
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Effective Date: 1984-11-04
- Plan Year: Unknown
- Participants: Unknown
- Assets: Unknown
- EIN: Not publicly listed (required for QDRO submission)
- Plan Number: Not publicly listed (required for QDRO submission)
Even though plan number and EIN aren’t currently available, your attorney or QDRO professional will typically obtain these directly from the plan administrator during the process.
Key Considerations When Dividing a 401(k): The Progressive 401(k) Plan Highlights
Employee and Employer Contributions
In a divorce, the QDRO can divide just the participant’s contributions or include employer match contributions as well. With The Progressive 401(k) Plan, both types of contributions exist.
Important: Employer contributions may be subject to vesting schedules. If the participant isn’t 100% vested at the time of divorce, the non-vested portion usually can’t be awarded to the alternate payee. So timing matters.
Vesting Schedules and Forfeitures
The Progressive 401(k) Plan likely uses a graded or cliff vesting schedule for employer contributions. For example, an employee might be 20% vested after 2 years, 100% after 6 years.
If the QDRO is silent on how to treat unvested funds, disputes can arise. A good QDRO will address:
- What happens to unvested employer contributions?
- Should the alternate payee get a share if those amounts later vest?
- Should forfeitures be included or excluded from the division?
Loans Against the 401(k)
If the participant has borrowed from their Progressive 401(k) account, the QDRO must decide whether to include or exclude that loan from the assignable balance.
For example: If the account has $100,000 but includes a $20,000 loan the participant took out, does the alternate payee receive 50% of $100,000 or $80,000?
We usually exclude loan balances unless otherwise agreed, since the participant retains responsibility for repaying their own loan amount.
Traditional vs. Roth Accounts
The Progressive 401(k) Plan may include both traditional (pre-tax) and Roth (after-tax) contributions. These are treated differently for tax purposes, so the QDRO must clearly indicate how these separate account types should be divided.
- Traditional 401(k): Distributions are taxable to the recipient
- Roth 401(k): Generally tax-free if certain conditions are met
Be sure to state in the QDRO whether the division applies to both account types and in what proportions. Otherwise, distribution or rollover problems could delay or even void the transfer.
QDRO Requirements for The Progressive 401(k) Plan
Each 401(k) plan follows federal ERISA rules, but individual administrators often have their own requirements. For The Progressive 401(k) Plan, the plan administrator—typically under the control of The progressive corporation & its participating subsidiaries—may request the following:
- Exact plan name (“The Progressive 401(k) Plan”)
- Specific references to account types (Traditional vs. Roth)
- Statement addressing outstanding loan balances
- Clear calculation method (percentage, dollar amount, or formula)
- Tax responsibility and account rollover instructions
Failure to include even one required detail can cause the QDRO to be rejected. That’s why working with an experienced provider like PeacockQDROs makes all the difference.
Common Mistakes to Avoid
We’ve seen thousands of real QDROs—and we’ve fixed just as many mistakes that other firms made. Some of the most common issues with dividing The Progressive 401(k) Plan include:
- Failing to address Roth vs. traditional account divisions
- Ignoring unvested employer contributions that become vested later
- Misstating how loans affect the assignable balance
- Using the wrong plan name or excluding the plan number
See more of the avoidable errors we’ve identified: Common QDRO Mistakes
How Long Does the QDRO Process Take?
This depends on several factors, including the complexity of the plan and how quickly the parties finalize their divorce. Typically, the process involves:
- Drafting the QDRO
- Getting it preapproved by the plan administrator (if applicable)
- Obtaining court approval and a judge’s signature
- Submitting the signed QDRO to the plan administrator
- Following up to confirm the division is completed
Timing varies. Learn about the biggest factors: Factors That Determine How Long QDROs Take
Why Work With PeacockQDROs?
QDROs are too important to leave in the hands of a general family law attorney or a document-only service. At PeacockQDROs, we go further. We handle your QDRO from the initial draft through court filing, submission, and completion.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Learn more about our services here: Qualified Domestic Relations Orders
Final Thoughts
Dividing an account like The Progressive 401(k) Plan isn’t just about splitting a dollar amount. You have to consider plan rules, vesting schedules, tax types, loans, and administrator requirements—all while complying with federal law.
Whether you’re the employee-participant or the alternate payee, the key to protecting your assets is an effective, accurate QDRO. And the key to an effective QDRO is working with a team that handles all the hard parts for you.
Get Help with Your QDRO
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 Progressive 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.