Why a QDRO Matters in Dividing the Disability Mgmt Services, Inc. 401(k) Retirement Plan
If you’re getting divorced and your spouse participated in the Disability Mgmt Services, Inc. 401(k) Retirement Plan, you’re likely entitled to a portion of their retirement savings. But you can’t just rely on the divorce judgment to get your share. You need a Qualified Domestic Relations Order—commonly known as a QDRO—to make sure the division happens legally and effectively.
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.
Plan-Specific Details for the Disability Mgmt Services, Inc. 401(k) Retirement Plan
- Plan Name: Disability Mgmt Services, Inc. 401(k) Retirement Plan
- Sponsor: Disability mgmt services, Inc. 401k retirement plan
- Address Associated with Plan: 27 Orchard St
- Plan Industry: General Business
- Organization Type: Corporation
- Plan Status: Active
- Effective Date: Unknown
- Plan Number: Unknown (Required in the QDRO—request from the plan or employer if not listed)
- EIN: Unknown (Also required—obtain this from the sponsor or administrator before submitting the QDRO)
Because required identifying details like the EIN and plan number are unknown, be sure to confirm this information before drafting your QDRO. Submitting incomplete information could delay processing or lead to denial by the plan administrator.
How 401(k) Plans Are Treated in Divorce
401(k) accounts like the Disability Mgmt Services, Inc. 401(k) Retirement Plan are considered marital property to the extent they were earned during the marriage. A QDRO allows funds to transfer from one spouse to the other without tax penalties. However, dividing an account is far from automatic—it requires a written court order that complies with both federal ERISA rules and plan-specific procedures.
What to Include in a QDRO for This 401(k) Plan
Employee Contributions vs. Employer Contributions
Many 401(k) plans include both employee salary deferrals and employer matching or profit-sharing contributions. Knowing how much of the plan balance consists of employer contributions is critical—especially since employer funds often follow a vesting schedule, meaning only a portion may truly belong to the participant at the time of divorce.
Vesting and Forfeitures
If your ex-spouse was not fully vested in all employer contributions at the time of the divorce, only the vested portion can be divided in your favor. Unvested amounts return to the plan if the employee leaves the company before becoming fully vested. For your QDRO to be accurate, request a current statement that breaks down vested versus unvested balances.
Loan Balances
One critical question in dividing a 401(k): does the account have any outstanding loans? If your spouse borrowed money from their Disability Mgmt Services, Inc. 401(k) Retirement Plan, the current loan balance reduces the account’s value. But does it reduce your share? That depends on how your QDRO is written. You can structure your QDRO to either include or exclude the loan from your awarded amount, depending on your divorce agreement.
Traditional vs. Roth Accounts
401(k) plans often include both traditional (pre-tax) and Roth (post-tax) contributions. These are legally different account types, and your QDRO must be specific. If your share includes both types, the plan must separate the amounts accordingly. Be careful—failure to specify account types could affect how much tax you end up paying later.
Important QDRO Steps for the Disability Mgmt Services, Inc. 401(k) Retirement Plan
Step 1: Get a Sample or Model QDRO from the Plan Administrator
Not all plans offer sample QDROs, but if the Disability mgmt services, Inc. 401k retirement plan does, reviewing one can help ensure your language complies with their requirements. Even if they don’t provide a model, asking for their QDRO guidelines is essential.
Step 2: Confirm Plan Details
Double-check the correct plan number, EIN, plan name, and administrator contacts. Missing or incorrect info will trigger delays. This is especially important here since the available public details are incomplete. You may need to contact HR or the plan manager directly.
Step 3: Decide How to Divide the Account
This might be:
- A flat dollar amount (e.g., $50,000)
- A percentage of the account as of a specific date (e.g., 50% as of the date of divorce)
- A coverture formula based on years of marriage overlapping employment
We can help you choose the cleanest method based on your divorce terms and the full plan info.
Step 4: Address Special Features Like Loans and Vesting
Your QDRO should make clear whether loan balances and unvested employer contributions are included or excluded. For example, “alternate payee shall receive 50% of the participant’s vested account balance, excluding any outstanding loan obligation.”
Step 5: Submit to Court and Then to the Plan
Once the QDRO is drafted, it must be signed by both parties and approved by the court that handled your divorce. After court entry, you’ll submit the QDRO to the plan administrator for final approval and processing.
Common QDRO Issues With 401(k) Plans
Plans like the Disability Mgmt Services, Inc. 401(k) Retirement Plan often introduce tricky issues we see all the time, including:
- Failing to distinguish Roth from traditional assets
- Omitting details about loan balances
- Using a valuation date the plan can’t track
- Not accounting for investment gains/losses after the division date
To avoid these errors, check out our guide to common QDRO mistakes.
Timing: How Long Does It Take?
Each QDRO goes through several stages: drafting, court entry, and plan review. Timing depends on local court speed and the plan’s responsiveness. Most QDROs are finalized in 60–120 days, but this varies. See five factors that affect QDRO timing.
Why Work With PeacockQDROs?
We’ve done thousands of QDROs—hands-on, start to finish. At PeacockQDROs, we’re different from document-only services. We manage every step, from drafting to final plan approval, so you’re not left guessing what to do next. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
If you’re ready to get your QDRO for the Disability Mgmt Services, Inc. 401(k) Retirement Plan done properly, start with our experienced team. Learn more about our QDRO process.
Final Tips
- Know if your share includes or excludes outstanding loan balances.
- Understand how Roth and traditional assets will be divided.
- Get a copy of the plan’s QDRO procedures from the administrator.
- Use a professional QDRO service with experience in corporate 401(k) plans.
Call to Action
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 Disability Mgmt Services, Inc. 401(k) Retirement 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.