Going through a divorce is hard enough without having to figure out how to split retirement accounts like a 401(k). If you or your spouse participated in the Alight Solutions LLC 401(k) Plan (fka Hewitt Associates LLC 401(k) Plan), you’ll need a Qualified Domestic Relations Order—or QDRO—to divide the savings properly and legally.
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 article outlines what divorcing spouses need to know when dividing the Alight Solutions LLC 401(k) Plan (fka Hewitt Associates LLC 401(k) Plan), what plan-specific complications exist, and how to avoid common mistakes when drafting your QDRO.
Before drafting your QDRO, it’s critical to understand the relevant details of the plan. Here’s what we know about the Alight Solutions LLC 401(k) Plan (fka Hewitt Associates LLC 401(k) Plan):
You’ll need the plan number and EIN when finalizing and filing your QDRO. If you don’t have them, request the Summary Plan Description (SPD) or contact the plan administrator directly.
A QDRO is a court order that allows the division of qualified retirement plans—like a 401(k)—without triggering early withdrawal penalties or tax consequences. For the Alight Solutions LLC 401(k) Plan (fka Hewitt Associates LLC 401(k) Plan), a QDRO authorizes the transfer of a portion of the account to the non-employee spouse, called the “Alternate Payee.”
A divorce decree alone isn’t enough. Without a QDRO, the plan won’t recognize the Alternate Payee’s rights to the retirement funds. Don’t risk it—get the order done properly the first time.
In 401(k) plans like this one, balances may consist of both employee deferrals (what the participant contributes) and employer contributions (matches, bonuses, etc.). In most cases, both are divisible through the QDRO. However, the employer contributions might be subject to vesting.
Employer contributions in the Alight Solutions LLC 401(k) Plan (fka Hewitt Associates LLC 401(k) Plan) may not be fully vested at the time of divorce. If a participant leaves the company before reaching full vesting, the unvested portion may be forfeited. That matters because the QDRO can’t divide money that doesn’t belong to the participant. The QDRO can—and often should—include language stating how unvested funds will be handled if they become vested post-divorce.
If the participant has taken a loan from the 401(k), the QDRO needs to specify whether the loan balance is included or excluded from the divisible account value. Usually, loan balances are subtracted from the account’s gross value before division, but the details can be negotiated during the divorce. If you don’t address it, the plan will assume a default policy—often to exclude it.
Some employees have both traditional (pre-tax) and Roth (post-tax) balances in a 401(k). Your QDRO should be specific about how each type is to be divided. If the order doesn’t clearly allocate Roth vs. traditional funds, it can delay processing—or worse, result in an uneven tax burden down the line.
Mistakes in QDROs can cost time and money. Here are the most frequent issues we see with this specific retirement plan:
We’ve compiled a list ofcommon QDRO errors we see —avoid these to prevent delays.
At PeacockQDROs, we go further than just drafting your order. First, we confirm the plan accepts QDROs for the divorce judgment in question. Then, we make sure we have the correct plan number, EIN, and address—and that it matches the current format used by the Alight Solutions LLC 401(k) Plan (fka Hewitt Associates LLC 401(k) Plan). Next, we draft the QDRO language to match the division agreement and submit it for preapproval if permitted. Finally, we handle the court filing and follow up to make sure it’s accepted and implemented.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Learn more aboutour QDRO services.
The process can take anywhere from 2 to 6 months, depending on the complexity of the file and the responsiveness of the court and plan administrator. See our guide on the5 factors that affect QDRO processing time.
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 Alight Solutions LLC 401(k) Plan (fka Hewitt Associates LLC 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 →
