Understanding QDROs and the Truist Financial Corporation 401(k) Savings Plan
If you’re going through a divorce and either you or your spouse has been contributing to the Truist Financial Corporation 401(k) Savings Plan, you’ll likely need a Qualified Domestic Relations Order (QDRO). A QDRO is the legal tool that allows a retirement plan to divide assets between divorcing spouses without triggering early withdrawal penalties or immediate taxes. But drafting a successful QDRO requires careful attention to the specific features of the plan—not just a cookie-cutter form. With a 401(k) like the Truist Financial Corporation 401(k) Savings Plan, complications like vesting schedules, loan balances, and Roth contributions can make-or-break your outcome.
At PeacockQDROs, we’ve completed thousands of 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.
Plan-Specific Details for the Truist Financial Corporation 401(k) Savings Plan
- Plan Name: Truist Financial Corporation 401(k) Savings Plan
- Sponsor: Truist financial corporation 401(k) savings plan
- Address: 214 N. TRYON STREET
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- EIN and Plan Number: Required documentation, should be obtained before filing the QDRO
This plan has been in existence since 1982, and like many long-standing 401(k) plans in General Business sectors, it likely includes traditional and Roth contributions, employer matches with various vesting schedules, and the possibility of participant loans. All of these require careful treatment in a QDRO.
Dividing a 401(k) in Divorce: The Basics
Under federal law, a qualified retirement plan like the Truist Financial Corporation 401(k) Savings Plan cannot pay benefits to a non-employee spouse without a QDRO. A QDRO legally assigns a portion of the retirement account to the “alternate payee” (typically the former spouse) without triggering penalties or income taxes at the time of division. However, how you word the QDRO—and what you include—matters a lot.
Key Elements to Address in Your QDRO
Employee vs. Employer Contributions
In many 401(k) plans, the employee’s contributions are always 100% vested. But employer contributions—including matching funds—may be subject to a vesting schedule. This means some of the value showing in the account may not yet belong to the participant. A good QDRO should clarify:
- Whether the alternate payee receives only vested balances or a share of the full account balance
- What happens to unvested amounts if the participant later becomes vested after divorce
If the QDRO doesn’t address this, the plan administrator may exclude unvested amounts or apply default interpretation that doesn’t reflect your negotiated agreement.
401(k) Loan Balances
If the participant has taken a loan against their Truist Financial Corporation 401(k) Savings Plan account, this reduces the current account value—but it raises questions for QDRO purposes. There are two main options:
- Exclude the loan from division, effectively assigning it to the participant alone
- Include the loan balance when calculating the alternate payee’s share, which may reduce the liquid portion they receive
The right approach depends on each couple’s overall financial situation. Be sure your QDRO clearly addresses how loan balances are handled.
Roth vs. Traditional Contributions
The Truist Financial Corporation 401(k) Savings Plan may include both traditional (pre-tax) and Roth (after-tax) contributions. These accounts are subject to different tax treatment, so your QDRO should specify whether:
- The alternate payee receives a pro-rata share of all account types
- Each account type is divided separately
It’s important to understand that Roth 401(k) balances, if rolled over correctly to a Roth IRA by the alternate payee, can preserve their tax-free status. But if rolled into a traditional IRA by mistake, serious tax implications could follow.
How Vesting Schedules Affect Distribution
Because Truist financial corporation 401(k) savings plan likely includes employer contributions with a vesting schedule, it’s vital to determine:
- The participant’s current vested percentage
- Whether the alternate payee’s share is limited to the vested portion or includes future vesting
Many plan administrators will not divide non-vested portions unless the QDRO specifically requires it. Timing matters here—if a participant is close to full vesting, it may be worth delaying division or using language that includes post-divorce increases in vesting.
Common QDRO Mistakes in 401(k) Divisions
We’ve seen many divorces go sideways because of poorly drafted QDROs. Here are some of the most frequent pitfalls to avoid when dividing the Truist Financial Corporation 401(k) Savings Plan:
- Failing to account for loan balances
- Ignoring the vesting schedule
- Not specifying Roth vs. traditional account treatment
- Providing improperly broad or vague division language
Our guide on common QDRO mistakes dives deeper into these issues and how to avoid them.
The Right Timeframe for Completing a QDRO
Many people assume that getting a QDRO done quickly just means filling out a form. That’s rarely the case. At PeacockQDROs, we understand there are multiple steps involved—drafting, coordinating with the other party, pre-approval (if the plan allows), obtaining a certified court order, and submitting to the administrator. Each of these steps can add time, and it’s important to know what to expect. Review our guide on factors that affect QDRO timing.
Why You Need QDRO Experts—Not Just Document Preparers
Many services will prepare a QDRO for you.. and stop there. That works fine if nothing goes wrong. But what if the plan administrator rejects your order? What if your court clerk sends it back? What if the division language doesn’t match the plan’s processes? That’s where we come in. At PeacockQDROs, we don’t stop at the draft. We take your order from beginning to end—including preapproval (if applicable), filing, and final submission. That means fewer delays, fewer mistakes, and fewer headaches.
Learn more about how we handle QDROs start to finish.
Final Thoughts
The Truist Financial Corporation 401(k) Savings Plan offers important retirement benefits, but when divorce is involved, you must be careful about how you divide them. Details like loan balances, account types, and vesting schedules make it essential to get the QDRO right the first time. We’ve helped thousands of clients through this exact process, and we can help you avoid costly mistakes that happen when you rely on generic templates or inexperienced preparers.
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 Truist Financial Corporation 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.