If you’re divorcing and either you or your spouse has a retirement account with the M.j. Harris Construction Services, LLC 401(k) Profit Sharing Plan, you’ll need a Qualified Domestic Relations Order (QDRO) to properly and legally divide those benefits. Without a QDRO, the plan won’t recognize your right to receive a portion of the retirement benefits—even if your divorce decree awards you one.
At PeacockQDROs, we’ve handled many these types of orders from start to finish. We know what this specific plan requires, and how to avoid common mistakes that can delay your benefits. In this article, we’ll lay out what you need to know about dividing the M.j. Harris Construction Services, LLC 401(k) Profit Sharing Plan through a QDRO.
Before diving into how to divide this plan properly, it’s important to understand exactly which plan we’re talking about. Here are the key details:
While some details such as EIN and plan number are missing, these can typically be obtained through plan documents or directly from the employer. These are vital for drafting a valid QDRO.
The M.j. Harris Construction Services, LLC 401(k) Profit Sharing Plan is a type of defined contribution plan. That means it likely involves a combination of employee contributions (traditional or Roth deferrals) and possibly employer matching or profit-sharing contributions. This can create complications during a divorce if not addressed properly in a QDRO.
Failing to address these elements can result in faulty QDROs that delay or even prevent proper distribution.
The first step is requesting a copy of the QDRO procedures from the plan administrator. These procedures should outline the preferred formatting, required content, and submission process for the M.j. Harris Construction Services, LLC 401(k) Profit Sharing Plan. At PeacockQDROs, we regularly reach out to plan administrators to obtain this exact guidance and ensure full compliance during drafting.
The participant is the person who earned the retirement benefits; the alternate payee is the spouse (or ex-spouse) receiving the share. The QDRO must accurately list both individuals, including names, addresses, and Social Security numbers (the latter are redacted from filed versions but provided to the plan for identification).
You’ll typically want to award either a percentage of the account balance as of a specific date, or a dollar amount. For example:
If the participant has Roth and traditional subaccounts, the QDRO should be specific about how each is divided. For example, the alternate payee may receive 50% of the traditional balance and no share of the Roth, or vice versa.
A participant loan reduces the plan balance, but should you include or exclude it in calculating the alternate payee’s share? Be clear in your order. Also, employer contributions typically vest over time. If part of the account is unvested, that portion may be forfeited and cannot be awarded to the alternate payee.
Once the order is signed by the court and approved by the plan administrator, the plan will set up a separate account for the alternate payee or allow a distribution or rollover. In most cases, the alternate payee may choose to roll the money into their own IRA or receive a direct distribution (keeping in mind tax implications).
QDROs must be very specific when dealing with 401(k) plans. At PeacockQDROs, we’ve corrected many bad QDROs that omitted key information or used vague language. To avoid delays and disputes:
We outline more of these errors on ourcommon QDRO mistakes page.
Plan administrators may take weeks or even months to approve a QDRO. That’s why it’s critical to submit a clear, compliant order from the start. Check out our guide on the5 factors that determine how long it takes to get a QDRO done.
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. If the M.j. Harris Construction Services, LLC 401(k) Profit Sharing Plan is part of your divorce, we can get it divided the right way—without the stress and delay.
Explore ourQDRO resources to learn more orreach out to us for help getting started.
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 M.j. Harris Construction Services, LLC 401(k) Profit Sharing 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 →
