Introduction
Dividing retirement benefits in a divorce can be complicated—especially when it comes to splitting a 401(k) plan like the Tom’s 5, LLC 401(k) Plan. If you or your spouse participated in this plan during your marriage, a Qualified Domestic Relations Order (QDRO) is likely required to divide the benefits legally and without triggering taxes or penalties.
At PeacockQDROs, we’ve helped thousands of clients navigate this process the right way. Here’s what you need to know about dividing the Tom’s 5, LLC 401(k) Plan during divorce.
Plan-Specific Details for the Tom’s 5, LLC 401(k) Plan
When drafting a QDRO, it’s essential to understand the specific retirement plan being divided. Below are the known details for the Tom’s 5, LLC 401(k) Plan:
- Plan Name: Tom’s 5, LLC 401(k) Plan
- Sponsor: Tom’s 5, LLC 401(k) plan
- Address: 20250718151430NAL0000927827001, 2024-01-01
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Business Entity
- Plan Number: Unknown (must be identified before QDRO submission)
- EIN: Unknown (must be identified before QDRO submission)
- Plan Status: Active
- Plan Assets: Unknown
- Participants: Unknown
- Plan Year and Effective Date: Unknown
To prepare a complete and effective QDRO, the plan number and EIN must be provided. These details are typically available from your divorce attorney, the plan participant, or directly from the plan administrator.
Why a QDRO Is Required for the Tom’s 5, LLC 401(k) Plan
Because this is an employer-sponsored 401(k) plan, it falls under the Employee Retirement Income Security Act (ERISA). Under ERISA, no one—including a spouse or court—can receive a participant’s benefits unless a QDRO is in place. The QDRO legally directs the plan administrator to pay a portion of the account to an “alternate payee,” which is typically the ex-spouse.
Without a QDRO, the plan will not make distributions to anyone other than the employee-participant. Any transfer made without a QDRO may be taxed and penalized, even in a divorce.
Dividing 401(k) Contributions in Divorce
One of the most important decisions a QDRO must address for the Tom’s 5, LLC 401(k) Plan is how to divide the account. This includes:
- Employee Contributions: Typically 100% vested and fully divisible.
- Employer Contributions: May be subject to a vesting schedule. Only vested amounts can be divided in a QDRO.
If the participant is not fully vested, the QDRO should clarify whether future vesting events affect the alternate payee’s share or whether amounts are limited to only what’s vested as of the division date.
Vesting and Forfeited Amounts
Many Business Entity 401(k) plans, like the Tom’s 5, LLC 401(k) Plan, use a vesting schedule for employer contributions. This means if an employee leaves the company before a certain number of years, part of the employer match may be forfeited. The QDRO must account for this by:
- Only assigning vested contributions, or
- Including future vesting events if the alternate payee is entitled to them
A common mistake is drafting the QDRO without checking whether the participant is fully vested. We always recommend verifying this with the plan administrator before finalizing the QDRO. To learn about other common QDRO errors, visit our QDRO mistakes guide.
Handling Roth vs. Traditional 401(k) Funds
Many 401(k) plans—especially more modern plans like the Tom’s 5, LLC 401(k) Plan—offer both traditional (pre-tax) and Roth (after-tax) contributions. It’s critical that the QDRO distinguish between the two:
- Roth Account Transfers: These must remain in a Roth account upon transfer to preserve tax-free growth and distribution benefits.
- Traditional Account Transfers: May be rolled over into a traditional IRA or other qualified plan.
Failing to separate Roth from traditional accounts in the QDRO can result in the IRS treating the transfer improperly—leading to taxation or penalties. Always ensure the QDRO specifies each account type separately. Our team always checks for this distinction to make sure you’re protected.
What About 401(k) Loans?
If the participant has taken a loan from the Tom’s 5, LLC 401(k) Plan, this can impact what’s divisible:
- Loan Balances: These reduce the account’s total balance available for division.
- Responsibility for Repayment: Typically remains with the participant—but this should be clarified in the divorce judgment, even if not by the QDRO.
A good QDRO will state whether the division is based on the account before or after the loan balance. If you leave this ambiguous, the plan administrator will use its default approach–which may not be favorable to both parties.
QDRO Processing and Administrative Timelines
Processing a QDRO for the Tom’s 5, LLC 401(k) Plan depends on how quickly the plan administrator reviews and approves the order. Because this is a Business Entity 401(k) plan, timelines can vary.
On average, the process includes:
- Drafting the QDRO
- Submitting it for plan preapproval (if allowed)
- Getting the order signed and filed with the court
- Sending the signed order to the plan
- Waiting for final plan approval and processing
Several factors affect how long this takes. For more info, read the 5 factors that impact QDRO timelines.
Why Choose PeacockQDROs for Your Case?
At PeacockQDROs, we don’t just draft the QDRO and hand it off to you—we take care of everything from beginning to end. That includes drafting, preapproval (if applicable), court filing, plan submission, and administrator follow-up. That’s what sets us apart from firms that only create the document.
Our team maintains near-perfect reviews and a strong reputation for getting it done right—the first time.
If you’re dealing with a QDRO involving the Tom’s 5, LLC 401(k) Plan, don’t take risks with your retirement. Check out our QDRO services and see how we can help.
Next Steps: What You Should Do
Here’s what we recommend if you’re dividing the Tom’s 5, LLC 401(k) Plan in your divorce:
- Get a copy of the Summary Plan Description (SPD) from the plan participant or administrator
- Determine if there are Roth and traditional sub-accounts
- Check if there are active loans or forfeitable employer contributions
- Identify the plan number and EIN for proper QDRO documentation
- Work with qualified professionals who understand the full QDRO process
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 Tom’s 5, LLC 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.