Understanding QDROs and the Keycorp 401(k) Savings Plan
When going through a divorce, retirement savings are often one of the largest assets in a marriage. For those working at or divorcing someone affiliated with the Keycorp 401k savings plan, it’s important to know exactly how to divide the Keycorp 401(k) Savings Plan properly using a Qualified Domestic Relations Order (QDRO). A QDRO is the only legal way to split a retirement account like a 401(k) under federal law without triggering taxes or early withdrawal penalties.
At PeacockQDROs, we’ve completed thousands of QDROs start to finish. That includes drafting, getting it preapproved (if the plan allows), handling court filing, and working with the plan administrator until everything is finalized. That’s a big reason we stand apart from firms that just hand you a draft and leave the rest to you.
Plan-Specific Details for the Keycorp 401(k) Savings Plan
Before preparing a QDRO, it’s important to gather all critical details about the plan in question. Here’s what we know about this specific retirement plan:
- Plan Name: Keycorp 401(k) Savings Plan
- Sponsor: Keycorp 401k savings plan
- Address: 127 PUBLIC SQUARE
- Plan Start Date: 1979-01-01
- Plan Active Years: 2024-01-01 to 2024-12-31 (most recently reported)
- Employer Industry: General Business
- Organization Type: Business Entity
- EIN: Unknown (will be needed during QDRO prep)
- Plan Number: Unknown (also required for QDRO documents)
- Status: Active
- Participants: Unknown
- Assets: Unknown
While certain information—like the plan number or EIN—is missing here, that data must eventually be obtained during the QDRO drafting process. It’s typically located on plan statements or available from the employer or plan administrator.
Key Considerations When Dividing a 401(k) Plan Like Keycorp’s
Because the Keycorp 401(k) Savings Plan is a defined contribution plan, the division is based on account balances and specific contribution rules—not future monthly benefit payments like a pension. But that doesn’t mean it’s simple. Here are a few things we watch for:
Employee and Employer Contributions
Most 401(k) plans are funded by both the employee’s salary deferrals and employer matches or profit-sharing. A QDRO should make it clear whether the alternate payee (the ex-spouse) receives a share of just the employee’s contributions or also the employer’s match. This can make a significant difference in the award amount.
Vesting Schedules
Employer contributions in the Keycorp 401(k) Savings Plan may be subject to a vesting schedule—meaning the employee only “owns” a percentage of the employer contributions based on years of service. If the marriage ended before the employee was fully vested, the alternate payee may not be entitled to the full employer-paid portion. We make sure any QDRO accounts for this.
401(k) Loan Balances
Many participants borrow against their retirement plan using a 401(k) loan. It’s important to clarify in the QDRO whether loans are deducted before or after division. If this is missed, it can completely throw off the intended split.
Some plans reduce the divisible amount by the outstanding loan (justified when the loan benefited both spouses), while others divide the account as if the loan doesn’t exist. We assess how the loan was used and advise clients accordingly.
Traditional vs. Roth Contributions
The Keycorp 401(k) Savings Plan may offer both traditional (pre-tax) and Roth (after-tax) deferrals. The QDRO must clarify how each portion is to be divided, especially since Roth money has different tax treatment. If left vague, the plan administrator may delay processing, or worse—divide it inequitably.
QDRO Drafting Tips for the Keycorp 401(k) Savings Plan
We’ve processed many QDROs for 401(k) accounts like this one. Here’s what we keep in mind to do it right:
- Spell out the division with a fixed dollar amount or percentage, and clearly state the valuation date (i.e., “as of the date of divorce” or “as of June 30, 2023”).
- Include tax language to ensure the alternate payee can transfer funds to an IRA tax-free under IRC § 414(p).
- Address all account types (traditional, Roth) and make sure both parties understand their tax responsibility on each part.
- Make sure the QDRO states whether gains and losses are included from the valuation date to the date of distribution.
- If the participant has a loan balance, state whether the loan is included or excluded from the alternate payee’s share.
Common QDRO Pitfalls with 401(k)s
Even experienced divorce attorneys sometimes miss key details in 401(k) QDROs. Here are a few common problems we fix:
- Failing to specify if employer contributions are included
- Not accounting for losses or gains on the alternate payee’s share
- Overlooking Roth balances, which can trigger unexpected tax reporting
- Using vague language like “50% of the account” without a concrete date
- Ignoring how loan balances affect the division
At PeacockQDROs, avoiding these missteps is what we do all day, every day. Check out our resource on common QDRO mistakes to learn more.
What to Expect: The QDRO Timeline
Timing can vary depending on your state, your court, and the plan’s processing times. But generally, here’s the process we follow:
- Gather plan and divorce decree info
- Draft a QDRO tailored to the Keycorp 401(k) Savings Plan
- Request preapproval from the plan if allowed (this step speeds things up)
- Get the QDRO signed by both parties and file it with the court
- Submit the court-approved QDRO to the plan administrator
- Follow up until the plan accepts it and processes the transfer
Every step matters. You can read more about how long QDROs take and what can speed things up or slow things down.
Why Work With PeacockQDROs?
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. We don’t disappear after the drafting stage—we stay involved until your QDRO is accepted and the retirement funds are divided. That’s why so many attorneys refer their divorce clients to us, and why so many people come to us after other firms leave them hanging.
Learn more about how we work at PeacockQDROs’ QDRO Center.
Gathering the Right Documents for the Keycorp 401(k) Savings Plan
For a successful QDRO, you’ll need to collect:
- Complete divorce judgment or marital settlement agreement
- Recent account statements from the Keycorp 401(k) Savings Plan
- Participant’s contact and employment details
- Full legal names and date of birth for both parties
- Plan documentation (includes EIN and plan number)
If you don’t have the plan number or EIN, the plan administrator or HR department at the sponsoring employer—Keycorp 401k savings plan—can supply it. This information is required to complete the QDRO.
Final Thoughts
Dividing a 401(k) is one of the most detail-oriented parts of a divorce, and it requires a QDRO that works for the plan administrator—not just the divorce court. When dealing with the Keycorp 401(k) Savings Plan, the goal is to avoid delays, surprises, or rejections. That’s exactly what we help our clients achieve every day.
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 Keycorp 401(k) Savings 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.