If you or your spouse has a retirement account through The New Teacher Project 403(b) Plan sponsored by Tntp, Inc., and you’re going through a divorce, it’s important to understand how that plan can be divided. The right way to do it is with a Qualified Domestic Relations Order—better known as a QDRO. A properly drafted QDRO ensures that each party receives their fair share of the retirement benefits without unnecessary taxes or penalties.
At PeacockQDROs, we’ve helped many divorcing couples divide retirement plans, including 403(b) and 401(k) plans. We don’t just create the QDRO document—we handle the full process, including plan preapproval, court filing, and administrator submission. This article breaks down exactly how a QDRO works for The New Teacher Project 403(b) Plan and what divorcing participants or spouses should watch out for.
If you’re preparing to divide this plan in a divorce, it’s essential to gather more detailed information from the plan administrator, since plan number, EIN, and participant account breakdowns will be required for accurate QDRO drafting and acceptance.
A QDRO is a special court order that allows retirement assets from a qualified plan like The New Teacher Project 403(b) Plan to be divided between divorcing spouses without triggering early withdrawal penalties or immediate taxation. Without a QDRO, the plan administrator cannot legally make a distribution to the non-employee spouse (called the “alternate payee”).
Because this is a 401(k)-style 403(b) plan, it is subject to ERISA rules similar to 401(k)s, so a QDRO is necessary to recognize a spouse’s right to receive a portion of the participant’s account.
The total balance of a retirement account like this often includes both employee contributions (which are fully vested immediately) and employer contributions, which may be subject to a vesting schedule. In divorce, it’s common to split the account based on a specific date (such as the date of separation). However, it’s critical to understand which portions of the account were actually vested on that date.
If Tntp, Inc.. makes employer contributions, those funds may not be entirely owned by the employee depending on how long they have worked there. Any portion not vested as of the division date generally remains with the employee—or is forfeited back into the plan—depending on plan rules. The QDRO should clarify that only vested funds are to be divided and clearly identify the valuation date.
The New Teacher Project 403(b) Plan may allow participants to make both pre-tax (traditional) and after-tax (Roth) contributions. Each has different tax consequences:
The QDRO must specifically state if the alternate payee’s portion is to come from Roth, traditional, or both types of accounts. Mixing these can create major tax reporting issues down the line, so clarity is essential.
If the employee has taken a loan from their The New Teacher Project 403(b) Plan account, that balance reduces the total account value, but it’s not always reduced equally on both sides. Courts differ in how they handle retirement loans in divorce. Some count the loan as a marital debt and assign it to one spouse; others treat it as a reduction in divisible assets.
The QDRO should state explicitly how outstanding loan balances are treated—whether the loan amount is deducted before division, or if the value is divided as if the loan does not exist and assigned solely to the employee spouse. It’s a common sticking point that can delay preapproval if not addressed up front.
Start by requesting your plan’s Summary Plan Description (SPD) and QDRO procedures directly from Tntp, Inc.. You’ll need these to make sure your court order complies with the plan’s requirements. For this plan, details like plan number and EIN will also be requested for administrator processing.
The QDRO should include all required information and specify:
Some plans allow a preapproval process where the QDRO is reviewed before being entered in court. We strongly recommend this step when available to avoid rejections after filing.
Once approved, the QDRO is entered with the court and submitted to the administrator. The plan then processes the division and establishes a separate account for the alternate payee.
This plan is subject to common issues we see with 401(k)-style plans. You can save time and stress by avoiding some frequent missteps:
See more at our Common QDRO Mistakes Guide.
Several factors impact how long a QDRO takes, including the plan’s responsiveness and the clarity of the order. If you’re wondering how long your QDRO might take, read our article on the 5 key timing factors here.
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. If you’re dividing The New Teacher Project 403(b) Plan, don’t risk delays, rejections, or tax traps. Work with a team that understands the process inside and out.
While retirement division is just one piece of the divorce process, it’s a big one. A carefully prepared QDRO for The New Teacher Project 403(b) Plan ensures that both spouses receive the benefits they’re entitled to without surprises down the road. And don’t forget—the details matter. The type of contributions, vesting, loans, and plan rules all need to be addressed in your QDRO.
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 The New Teacher Project 403(b) Plan, contact PeacockQDROs. We focus on QDROs and have successfully processed many 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.
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 →
