Understanding QDROs: How They Apply in Divorce
Dividing retirement assets during divorce is a critical part of reaching a fair financial settlement. When one spouse has a retirement plan like The New Museum of Contemporary Art 403(b) Plan, the proper tool to divide that plan is a Qualified Domestic Relations Order, or QDRO. Without a QDRO, the plan administrator can’t legally transfer any portion of the retirement plan to the non-employee spouse, also known as the “alternate payee.”
But not all QDROs are built the same—especially when dealing with plans like The New Museum of Contemporary Art 403(b) Plan. You need to understand how traditional and Roth accounts are treated, how vesting and loan balances affect distributions, and what documents the plan administrator will require.
Plan-Specific Details for the The New Museum of Contemporary Art 403(b) Plan
- Plan Name: The New Museum of Contemporary Art 403(b) Plan
- Sponsor: Unknown sponsor
- Address: 235 BOWERY, 2F2G2M3D
- Plan Type: 401(k) retirement plan
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- EIN and Plan Number: Unknown (must be obtained before submission)
To correctly process a QDRO for this plan, the plan number and sponsor EIN must be identified. These should be listed in either the Summary Plan Description (SPD) or obtained directly from the plan administrator. This information is essential and must be included in the QDRO document.
Key QDRO Considerations for The New Museum of Contemporary Art 403(b) Plan
As a 401(k)-type plan, The New Museum of Contemporary Art 403(b) Plan brings a few specific challenges when dividing it in divorce. Here are the main areas spouses and attorneys must pay attention to:
1. Employee and Employer Contributions
401(k) plans often include two kinds of contributions:
- Employee salary deferrals
- Employer matching or discretionary contributions
You can divide the plan using a percentage or a specific dollar amount. However, employer contributions may be subject to a vesting schedule. This means the employee spouse may only own a portion of those contributions, depending on how long they’ve worked for the sponsor (Unknown sponsor in this case).
2. Vesting Schedules and Forfeitures
Vesting is how much of the employer contributions the employee actually owns. For The New Museum of Contemporary Art 403(b) Plan, if the employee hasn’t been with the company long enough, part of the employer contributions may not be vested. That portion will eventually be forfeited and cannot be awarded to the alternate payee.
The QDRO should address how to handle unvested amounts. A typical option is to assign the alternate payee a percentage of whatever is vested as of the date of division. This avoids overpromising assets the employee doesn’t yet own.
3. Outstanding Loan Balances
401(k) plans often allow employees to take loans against their balance. If the employee has an outstanding loan from The New Museum of Contemporary Art 403(b) Plan, the order needs to clarify whether the percentage awarded to the alternate payee is calculated before or after the loan is subtracted.
Some QDROs award the alternate payee their portion of the “net” value — meaning the loan is subtracted first. Other orders specify their share should be based on the “gross” balance. It’s a crucial detail that can lead to significant financial discrepancies if left out.
4. Roth vs. Traditional 403(b) Contributions
The New Museum of Contemporary Art 403(b) Plan may include both pre-tax (traditional) and after-tax (Roth) accounts. This distinction is vital in QDROs. Roth funds are distributed tax-free (as long as IRS rules are met), while traditional funds are taxed as income when withdrawn.
Your QDRO must clearly state whether the alternate payee’s share comes from Roth, traditional, or both sources. Failing to account for this can result in surprise tax bills—or worse, rejection by the plan administrator.
Common QDRO Mistakes to Avoid
Many QDROs submitted to plans like The New Museum of Contemporary Art 403(b) Plan get rejected for being incomplete or inconsistent. Some common mistakes include:
- Omitting the plan sponsor and plan number
- Failing to specify how to handle loans or unvested funds
- Confusing pre-tax traditional accounts and after-tax Roth accounts
- Using outdated or incorrect language not accepted by the plan
Don’t rush this process. A rejected QDRO delays asset division and may add unnecessary conflict and legal fees. Learn more about common QDRO errors on our page here: Common QDRO Mistakes.
Our Full-Service Approach at PeacockQDROs
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. You don’t have to figure this out alone. Our team knows how to get QDROs accepted and processed quickly—even with plans as complex as The New Museum of Contemporary Art 403(b) Plan.
Every QDRO is unique. Factors like how long the marriage lasted, how many accounts are in play, and even how long your plan administrator takes to review paperwork affect your timeline. Read more about timing here: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
What You’ll Need to Complete the QDRO
When preparing a QDRO for The New Museum of Contemporary Art 403(b) Plan, you’ll need:
- The name of the plan (exactly as it appears): The New Museum of Contemporary Art 403(b) Plan
- Plan sponsor information: Currently listed as Unknown sponsor—must be verified
- The employer’s EIN and Plan Number (you’ll likely need to request this from the HR department or plan administrator)
- A recent account statement
- Details about whether there are loan balances or Roth subaccounts attached
Clear Communication with the Plan Administrator
Some plan administrators offer a model QDRO or pre-approval process—which can save time. Others don’t. Either way, having an experienced team handle communications with the administrator ensures everything is done according to that plan’s exact requirements.
If your plan administrator offers review before filing in court, we’ll do it. If they don’t, we’ll still base your QDRO on years of accepted language and experience with similar retirement plans.
Final Tips When Dividing The New Museum of Contemporary Art 403(b) Plan
- Always clarify how loans should be treated in the division
- Delineate between Roth and traditional balances
- Account for forfeitures of unvested employer contributions
- Reference the correct plan name and request the final plan documents to confirm specifics
Questions About Your QDRO? We’re Here to 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 The New Museum of Contemporary Art 403(b) 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.