Going through a divorce is never simple—especially when retirement accounts are on the line. If you or your spouse has an account in the Kuhn North America Retirement Savings Plan, dividing those assets requires a court-approved document called a QDRO, or Qualified Domestic Relations Order. Without a QDRO, the non-employee spouse has no legal right to access their marital share of the retirement funds, and the plan administrator cannot release funds or create a separate account.
In this article, we’ll cover how this plan functions in divorce, common hang-ups people run into, and how to protect your portion of retirement benefits through a properly executed QDRO.
Here are the known details of the plan you’re working with:
Even though some data is missing, an experienced QDRO attorney can work with the employer or plan administrator to obtain the details you’ll need to properly draft and submit the order.
A QDRO is a legal document that tells the Kuhn North America Retirement Savings Plan how to divide retirement funds during divorce proceedings, in compliance with federal and plan-specific rules. Without it, the plan cannot pay out any portion of the benefit to anyone except the participant spouse.
At PeacockQDROs, we take full responsibility for every step of the QDRO process—from drafting and preapproval (if required by the plan), to court filing, and submission to Kuhn north america, Inc. for final implementation. Unlike document-only services that leave you to figure out administration by yourself, we handle the entire process.
401(k) plans are made up of two types of contributions: employee deferrals and employer matching. In divorce, it’s critical to determine whether both kinds are being divided, and to ensure the QDRO specifies this clearly. Typically, all vested portions of the account through the date of divorce (or another court-specified cutoff date) are eligible for division.
Employer contributions are usually subject to a vesting schedule. This means that only a portion of them may be fully locked-in, or “vested,” at the time of divorce. Any unvested amounts are typically forfeited if the plan participant leaves the company. A QDRO must reflect whether it divides only the vested balance or includes future vesting of employer contributions based on the participant’s continued employment with Kuhn north america, Inc..
Plan loans are another tricky area in dividing 401(k) accounts. If the participant has taken out a loan from their account, the current balance may appear smaller than the actual accrued benefit. Courts differ on whether the loan should be counted as a marital asset. Some QDROs divide the pre-loan balance; others exclude the loan entirely. It’s essential to address this upfront and spell it out clearly in your QDRO.
Modern 401(k) plans often include Roth accounts, where contributions are made after-tax, in addition to traditional pre-tax contributions. These account types have different tax consequences. If you’re receiving a portion of a Roth 401(k), make sure the QDRO preserves the character of the funds—so you don’t unexpectedly get taxed on a Roth distribution.
Make sure your QDRO clearly defines the valuation date, often the date of divorce or separation. This date determines what account balance is being divided. The Kuhn North America Retirement Savings Plan likely reports account values quarterly or monthly, so pick a realistic date that aligns with available statements.
Most QDROs divide the marital portion by a flat percentage (like 50%) or a dollar amount. If the marriage began after plan participation, then a coverture formula (also called a Majauskas formula) may be needed to allocate only the portion earned during the marriage.
The value of retirement accounts fluctuates daily. Specify whether gains and losses (market-based growth or decline) should be included from the valuation date until the date of transfer. This can substantially impact the actual dollar amount received.
Some plans offer a preapproval process for QDROs—where the plan administrator reviews the draft before it’s submitted to court. At PeacockQDROs, we always recommend this step if available for the Kuhn North America Retirement Savings Plan. It helps avoid costly delays and re-filings.
Once the QDRO is signed by the court, it must be submitted to the plan administrator for review and implementation. Too many people forget this final step. We track the order all the way through and make sure it’s properly entered into the system—so your funds aren’t stuck in limbo.
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. For more information about how we help people just like you with QDROs, check out:
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 Kuhn North America Retirement Savings 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 →
