When couples divorce, their retirement accounts—including 401(k) plans—are often among the most valuable assets to divide. If one spouse has participated in the Synchronoss Technologies, Inc.. 401(k) Plan, the right legal tool for dividing that account is a Qualified Domestic Relations Order (QDRO). This order allows for the plan to legally transfer benefits to the former spouse, known as the “alternate payee,” while maintaining tax-deferred status and avoiding penalties.
However, not all 401(k) plans are the same, and every QDRO should be tailored to the specific rules of the plan it applies to. Below, we’ll walk you through everything you need to know to properly divide the Synchronoss Technologies, Inc.. 401(k) Plan in a divorce.
While the employer’s EIN and plan number are currently unknown and not publicly listed, these are required elements when submitting a QDRO for approval. If you’re drafting or submitting a QDRO for this plan, ensure that your attorney obtains these details from the plan administrator or through formal legal discovery, if necessary.
Dividing a 401(k), especially the Synchronoss Technologies, Inc.. 401(k) Plan, involves more than just splitting a number down the middle. Here are the main details that must be handled correctly in the QDRO.
These are typically 100% vested and represent the funds the employee has contributed through payroll deductions. In most QDROs, these can be split using a specific dollar amount or percentage as of a particular date. Make sure the order clearly states whether earnings and losses should be included through the date of distribution.
This is where many people make mistakes. Not all employer contributions are fully vested at the time of divorce. The Synchronoss Technologies, Inc.. 401(k) Plan, like many corporate plans, may have a vesting schedule that spreads over several years based on service and employment status. Unvested employer contributions will not be available to split unless and until they vest.
It’s important that a QDRO either:
If the employee has taken a loan from their plan balance, this can significantly impact what’s available to divide. QDROs should specify whether the loan balance is included in the marital share or excluded. This can dramatically change the dollar value due to the alternate payee.
Some court orders divide the gross value—and expect the alternate payee to step into part of the loan obligation. Others divide the net amount. Either approach is fine, but it must be clearly written into the QDRO.
If the Synchronoss Technologies, Inc.. 401(k) Plan includes both Roth and traditional sub-accounts, your QDRO should specify how each is divided. Roth accounts are taxed differently from traditional (pre-tax) 401(k) funds, so it’s smart to divide them proportionally, or account for them separately in the order.
We’ve seen many 401(k) QDROs over the years, and there are a few pitfalls that come up repeatedly. Here’s how to avoid missteps when handling a Synchronoss Technologies, Inc.. 401(k) Plan QDRO:
To see other critical missteps to avoid, check out our breakdown ofcommon QDRO mistakes.
Many people underestimate how long it takes to complete a QDRO. Between drafting, pre-approval from the plan (if offered), court filing, and administrator processing, the process can stretch for months. See our article onwhat affects QDRO timelines and plan accordingly—especially if you’re counting on those funds soon after divorce.
The QDRO should be submitted to the plan administrator of the Synchronoss Technologies, Inc.. 401(k) Plan, which is typically handled through Synchronoss technologies, Inc.. 401(k) plan’s HR or benefits department. Since EIN and plan number are currently unknown, those should be verified before submission.
If pre-approval is available, take advantage of it. Pre-approval allows you to fix technical issues before filing with the court, saving time and multiple court appearances. At PeacockQDROs, we always check whether a plan offers pre-approval and handle that step for you when allowed.
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. We know the ins and outs of QDROs for corporate plans like the Synchronoss Technologies, Inc.. 401(k) Plan, and we know how to get the job done right the first time.
Visit ourQDRO services page for more details orschedule a time to speak with us today.
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 Synchronoss Technologies, Inc.. 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 →
