Introduction
Dividing retirement plans in divorce can be one of the most technical and confusing parts of the property settlement process. It’s even more complex when the plan in question is a 401(k)-style defined contribution plan like the Craft3 403(b) Dc Plan. Whether you’re the participant or the alternate payee, understanding your rights and responsibilities under a Qualified Domestic Relations Order (QDRO) is essential. This guide will break down what divorcing couples need to know about dividing the Craft3 403(b) Dc Plan through a QDRO.
What Is a QDRO and Why You Need One for the Craft3 403(b) Dc Plan
A QDRO, or Qualified Domestic Relations Order, is a court order that directs a retirement plan, such as the Craft3 403(b) Dc Plan, to divide assets between a participant and their former spouse (called the alternate payee). Without a QDRO, the plan administrator is not legally allowed to transfer any portion of the plan’s funds to the non-employee spouse—even if the divorce decree says they should. A properly drafted QDRO ensures the division complies with federal ERISA laws and protects both parties from unintended tax consequences and delays.
Plan-Specific Details for the Craft3 403(b) Dc Plan
The Craft3 403(b) Dc Plan is a defined contribution retirement plan offered by an Unknown sponsor. This type of retirement plan is common in general business sectors for business entity organizations. Here is what we know about the plan:
- Plan Name: Craft3 403(b) Dc Plan
- Sponsor: Unknown sponsor
- Address: 409 Maynard Ave S., 2F2G2L2R2S2T
- Plan Type: 401(k)-style defined contribution plan
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Effective Date: Unknown
- EIN and Plan Number: Unknown (but essential for QDRO submission)
When preparing a QDRO for this plan, it’s important to dig into the plan’s specific provisions—including how employer contributions vest, whether Roth accounts are present, and whether there are loan balances to consider.
Key Issues When Dividing the Craft3 403(b) Dc Plan by QDRO
Employee vs. Employer Contributions
The participant’s own contributions to the plan are typically fully vested and divisible under a QDRO. However, employer contributions are often subject to a vesting schedule. If the participant has not met the required years of service, some employer contributions may not be divisible because they are not vested—and therefore may be forfeited after the divorce.
It’s critical to confirm the participant’s vested balance as of the agreed division date. A properly drafted QDRO should separate out and clarify whether only vested amounts will be divided or if any contingent language is needed for future vesting.
Handling Vesting and Forfeitures
This is a common source of confusion. Many plans provide a vesting schedule like “20% per year over 5 years.” If your divorce occurs during the middle of this schedule, the plan will determine how much of the employer match is nonforfeitable. A QDRO must address these potential forfeitures clearly so that expectations are understood upfront.
Loan Balances and Repayments
Participants may borrow from their 403(b) or 401(k) plans, and those loans reduce the account balance available for division. If a participant has taken out a loan, the QDRO should clarify whether the alternate payee’s share is calculated before or after subtracting the loan balance. This can be a contentious issue, and many courts allow alternative language to handle both scenarios.
We’ve seen cases where failure to account for the loan balance resulted in the alternate payee receiving less than what the divorce decree intended. Be extremely clear in your order.
Roth vs. Traditional Sub-Accounts
Many defined contribution plans like the Craft3 403(b) Dc Plan offer both Traditional (pre-tax) and Roth (after-tax) contribution options. A QDRO should explicitly state how to handle divisions across these account types. Transferring Roth balances improperly can trigger unexpected taxes or delays.
At PeacockQDROs, we always ask whether the plan includes Roth subaccounts and ensure the order treats each account according to its tax status.
Common QDRO Drafting Mistakes to Avoid
- Failing to address loan balances clearly
- Assuming all funds are vested when they are not
- Overlooking Roth contributions or mixing them with traditional accounts
- Using a template QDRO that doesn’t match the Craft3 403(b) Dc Plan provisions
- Not obtaining preapproval from the plan administrator before court submission (when possible)
For more common errors and how to avoid them, visit our full guide on common QDRO mistakes.
Required Information for QDRO Submission
Even if the EIN and plan number are currently unknown, they are mandatory for filing your QDRO with the plan administrator. This information can typically be retrieved through the divorce attorney, financial disclosure statements, or a request directly to the plan administrator via subpoena if necessary.
The QDRO must match the exact plan name: Craft3 403(b) Dc Plan. Avoid generic phrasing like “the company’s 401(k)” in legal documents. Specificity matters.
Timing: When Does the Division Happen?
The QDRO should state a clear division date—often the separation date, divorce date, or a specific valuation date. Some plans calculate the alternate payee’s share as the balance on that date, plus investment gains/losses until distribution. Discuss and confirm with the administrator how post-division gains will be handled.
Check out our resource on what affects QDRO timelines to set realistic expectations.
How PeacockQDROs Can Help
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 (when available), 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.
Our law firm maintains near-perfect reviews and prides itself on a track record of doing things the right way. You’re not just hiring a document service—you’re getting a legal partner invested in getting it done right the first time. Learn more about our QDRO services at PeacockQDROs.com.
Next Steps: Dividing the Craft3 403(b) Dc Plan in Your Divorce
If you’re in the process of divorce involving the Craft3 403(b) Dc Plan, here’s what we recommend:
- Confirm whether the plan has both Traditional and Roth subaccounts
- Request a current statement that includes vested balances and loan details
- Have your QDRO drafted by a professional who understands these 401(k) complexities
- Submit the draft for preapproval by the plan administrator when possible
- Secure court approval and ensure delivery to the plan for implementation
Don’t try to tackle this alone. A misstep could cost you thousands—or delay your retirement.
Contact PeacockQDROs for Help
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 Craft3 403(b) Dc 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.