Protecting Your Share of the Activehours 401(k) Plan: QDRO Best Practices

Dividing the Activehours 401(k) Plan in Divorce: What You Must Know

Divorcing couples who need to divide retirement assets face a challenging process, especially when a 401(k) plan like the Activehours 401(k) Plan is involved. Unlike other types of marital assets, qualified retirement accounts require a court-approved Qualified Domestic Relations Order (QDRO) to legally assign benefits to a former spouse. The QDRO ensures that the division complies with federal ERISA guidelines and the plan’s own administrative procedures.

If you or your spouse has an account in the Activehours 401(k) Plan, here’s what you need to know to avoid costly mistakes and secure your fair share.

Plan-Specific Details for the Activehours 401(k) Plan

Understanding key information specific to the plan is critical when drafting your QDRO. Here are the plan details you’ll need to reference:

Plan Name: Activehours 401(k) Plan
Sponsor: Activehours Inc..
Address: 200 Portage Ave
Plan Status: Active
Industry: General Business
Organization Type: Corporation
EIN: Unknown (must be obtained for QDRO filing)
Plan Number: Unknown (must be obtained from plan administrator or participant)
Plan Year: Unknown to Unknown
Effective Date: Unknown
Participants: Unknown
Assets: Unknown

Since both the EIN and plan number are required for your QDRO to be accepted, these will need to be confirmed directly from either the participant’s account documents or by contacting the plan administrator at Activehours Inc..

Understanding the Role of a QDRO in a 401(k) Division

A QDRO is a legal order that allows retirement plan benefits to be transferred from the employee (known as the “participant”) to an ex-spouse or other “alternate payee.” Without it, the plan administrator legally cannot distribute a portion of the account—even if it’s listed in your divorce decree.

In the case of the Activehours 401(k) Plan, the QDRO should address the unique characteristics common in 401(k) plans, such as pre-tax versus Roth accounts, employer matching, vesting, and loans.

Key Issues to Address in a QDRO for the Activehours 401(k) Plan

Employee and Employer Contributions

The QDRO should clearly specify whether it divides just the employee’s contributions or also includes employer matches. In most cases, employer contributions are only partially vested based on the company’s schedule. The QDRO must define how these will be handled.

Tip: Only include vested employer contributions in the division to avoid disputes or enforcement issues later.

Vesting Schedules and Forfeitures

Employer matching in 401(k) plans often follows a vesting schedule. If your QDRO references account balances including non-vested funds, you risk assigning funds that may never become payable. If the participant leaves Activehours Inc.. before being fully vested, the non-vested balance may be forfeited.

Best Practice: Divide only the vested portion of employer contributions or specify that the alternate payee receives a share only if funds become vested later.

Loans and Outstanding Balances

401(k) plans often allow participants to take loans from their own balances. The Activehours 401(k) Plan may include such loans. Any existing loan balance reduces the actual cash value of the account, which can impact the calculation of a fair marital division.

If the loan is excluded: The alternate payee will receive a share of the balance after subtracting the loan.
If the loan is included: The alternate payee receives a portion of the balance including the loan, meaning their benefit may be reduced by the loan obligation.

Important: Loans are the participant’s sole responsibility to repay, not the alternate payee’s. This must be stated clearly in the QDRO.

Roth vs. Traditional Accounts

Modern 401(k) plans, including the Activehours 401(k) Plan, often contain both traditional pre-tax contributions and Roth post-tax contributions. These two account types must be treated separately under a QDRO, because distributing post-tax versus pre-tax dollars affects tax obligations for the alternate payee.

Always distinguish: Whether the award includes Roth, traditional, or both account types. Failure to do so can create serious tax and benefit timing complications.

QDRO Process: Step-by-Step for the Activehours 401(k) Plan

1. Confirm Plan Details

Start by requesting a Summary Plan Description (SPD) or QDRO procedures directly from Activehours Inc… This helps confirm the administrator’s specific requirements, including where to send the order and any review protocols.

2. Draft the QDRO

The QDRO should list key details: full names, addresses, plan name (“Activehours 401(k) Plan”), percentage awarded, valuation date, vesting language, and whether it includes loans or Roth balances. Don’t guess—careful drafting now will prevent delays later.

3. Submit for Preapproval (if required)

Many plans allow or require a preapproval process before filing the QDRO with the court. While Activehours Inc.. hasn’t publicly shared their preferences, it’s best to check with their administrator.

4. Obtain Court Approval

Once the QDRO is finalized (and pre-approved if applicable), it must be submitted to the divorce court and signed by a judge. This step finalizes the QDRO as a court order.

5. Submit to Plan Administrator

The signed order needs to be submitted to the Activehours 401(k) Plan administrator. From there, they will review, implement, and communicate how the alternate payee’s portion will be distributed or moved into an IRA.

Why Work with 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.

Key Reminders When Dividing a 401(k)

Here are a few critical things to keep in mind when dealing with the Activehours 401(k) Plan:

Always account for loans and clarify responsibility
Use specific valuation dates—“as of date of divorce” is not enough
Include both Roth and traditional account divisions, if applicable
Reference only the vested amount of employer contributions unless otherwise agreed
Avoid vague percentage references like “50% of the account”—details matter!

Documentation Tips

Even though the EIN and Plan Number are currently unknown, these are critical for QDRO approval. You—or your attorney—should request them from Activehours Inc.. or the plan statement directly.

Pro tip: Your divorce decree should not act as your QDRO. It may describe a division, but without a separate QDRO, the plan will not follow your agreement. These are separate documents with different legal functions.

Final Words

Dividing the Activehours 401(k) Plan requires careful attention to plan rules, contributions, vesting, loans, and tax distinctions. A well-drafted QDRO protects both parties from costly mistakes and delays. Whether you’re the participant or the alternate payee, knowing what to ask and how to proceed can make all the difference.

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 Activehours 401(k) 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.