Splitting Retirement Benefits: Your Guide to QDROs for the Cogency Global, Inc.. 401(k) Plan

401(k) plans usually contain two core types of contributions: employee contributions (what the participant puts in) and employer contributions (what the company matches or adds). When dividing the Cogency Global, Inc.. 401(k) Plan, make sure your QDRO addresses:

• All contributions made during the marriage
• How to handle post-separation/contribution earnings and gains
• Differentiating vested vs. non-vested amounts

Make no assumptions—ask whether employer contributions are subject to a vesting schedule, and whether any of the employer match was forfeited when employment ended (if it did).

Most 401(k)s, including those in corporate settings like the Cogency Global, Inc.. 401(k) Plan, have vesting schedules for employer contributions. That means the participant earns ownership of the employer’s contributions over time. If you’re drafting a QDRO, consider:

• Only the vested portion of employer contributions may be awarded
• The unvested employer contributions will not transfer to the alternate payee
• We recommend using date-driven language carefully, especially when dealing with matches

401(k) loans can affect how much the non-employee spouse (alternate payee) receives. If the participant has taken a loan against the Cogency Global, Inc.. 401(k) Plan, the QDRO must state clearly whether the loan amount will be:

• Subtracted from the account before division
• Counted as part of the balance subject to division
• The responsibility of the plan participant

Be cautious here—loan treatment can make or break a fair division. Many plans do not allow loan assumption by the alternate payee, but it’s still possible to divide what remains after the loan is accounted for.

Many 401(k)s, including this one, can include both Roth and traditional (pre-tax) subaccounts. A good QDRO should list these separately to avoid post-award tax issues. Here’s what to keep in mind:

• Roth accounts are post-tax and should be divided as Roth-to-Roth
• Traditional accounts are pre-tax and will remain pre-tax upon transfer
• The QDRO must ensure the tax character of the funds remains the same (i.e., no conversions)

Failure to address this correctly can result in unnecessary tax burdens or IRS penalties for the alternate payee.

This document outlines how the plan handles QDROs, what language it needs to see, and where to send the order. Contact the plan administrator (usually the HR department or the recordkeeper) to request this.

Some plans offer QDRO preapproval before it’s submitted to the court. This is helpful—it saves time and prevents rejected orders. At PeacockQDROs, we’ll always handle the preapproval process for you if it’s available.

Language must comply with ERISA and the Internal Revenue Code, including:

• Exact plan name: Cogency Global, Inc.. 401(k) Plan
• Correct sponsor: Cogency global, Inc.. 401(k) plan
• Plan number and EIN (if available)
• Award amount or formula, divided by contribution types

We make sure your QDRO is tailored to divide the specific assets in this plan and aligns with the spouse’s divorce judgment or settlement terms.

Once your order is signed by the judge, we send it to the plan administrator. At PeacockQDROs, we track it until it’s processed and monitor for payout processing timelines—most lawyers or preparers don’t do this. We do.