Understanding QDROs and the Lloyd & Mcdaniel 401(k) Profit Sharing Plan
Dividing retirement assets during divorce can get messy—especially when you’re dealing with a 401(k) profit-sharing plan like the Lloyd & Mcdaniel 401(k) Profit Sharing Plan. If you’re divorcing someone who participates in this plan through the law firm Lloyd & mcdaniel pllc, or if you’re a participant yourself, you’ll need a Qualified Domestic Relations Order (QDRO) to legally divide the account.
At PeacockQDROs, we’ve handled thousands of QDROs from start to finish, and we’ve seen firsthand how small oversights can cause big delays. This article breaks down what you need to know about dividing the Lloyd & Mcdaniel 401(k) Profit Sharing Plan in your divorce, what makes this specific plan unique, and how to avoid common pitfalls related to vesting schedules, loan balances, and Roth accounts.
What Is a QDRO?
A Qualified Domestic Relations Order, or QDRO, is a legal order that allows retirement plans like 401(k)s to divide assets between ex-spouses without triggering early withdrawal penalties or tax consequences. Without a QDRO, the plan administrator cannot legally split the account—even if your divorce decree says you’re entitled to a share.
For employer-sponsored plans like the Lloyd & Mcdaniel 401(k) Profit Sharing Plan, a QDRO is the only way to receive your portion of the participant’s retirement benefits in a legally enforceable and tax-efficient way.
Plan-Specific Details for the Lloyd & Mcdaniel 401(k) Profit Sharing Plan
Here are the specific details we have for this plan:
- Plan Name: Lloyd & Mcdaniel 401(k) Profit Sharing Plan
- Sponsor: Lloyd & mcdaniel pllc
- Address: 700 N Hurstbourne Parkway, Suite 200
- Effective Dates: 1992-01-01 – Ongoing
- Plan Year: Unknown to Unknown (ask the plan administrator)
- EIN & Plan Number: Unknown (must be obtained for QDRO completion)
- Industry: General Business
- Type: Business Entity
- Plan Status: Active
Because key identifiers like the EIN and plan number are missing, you’ll need to contact the HR or benefits department at Lloyd & mcdaniel pllc or request the Summary Plan Description from the plan administrator to get the necessary details for your QDRO.
Key Elements When Dividing a 401(k) Plan in Divorce
Unlike pensions, 401(k) plans are defined contribution plans where the value depends on how much was contributed and how well the investments performed. But several details make QDROs for 401(k)s more delicate than they seem.
1. Employee and Employer Contributions
In the Lloyd & Mcdaniel 401(k) Profit Sharing Plan, both the employee and the employer may contribute to the account. While employee contributions are typically 100% vested immediately, employer contributions may be subject to vesting schedules. This means part of the account may not belong to the participant yet and, therefore, can’t be divided in a QDRO.
Make sure your QDRO requests division only of vested amounts. Otherwise, you may end up with a rejected order or be expecting funds that were never legally transferable.
2. Vesting Schedules and Forfeitures
If the participant isn’t fully vested in employer contributions—perhaps they’ve been with Lloyd & mcdaniel pllc for only a few years—some of those funds may be forfeited after a job change or separation. Ask the plan administrator for a vesting statement showing which portions are vested versus non-vested as of the date of divorce.
3. Traditional vs. Roth 401(k) Accounts
This plan may contain both pre-tax (traditional) and post-tax (Roth) funds. That matters. Traditional distributions will be taxable to the recipient, while Roth distributions (if qualified) may not be. A properly drafted QDRO should specify whether each type of fund is to be split proportionally or separately, and whether the alternate payee wants their share rolled over to a traditional IRA or Roth IRA, as applicable.
4. 401(k) Loan Balances
If the participant has taken out a loan from their Lloyd & Mcdaniel 401(k) Profit Sharing Plan account, it will affect the current balance and may reduce the divisible amount. Some QDROs state that the loan balance is to be included in the marital share; others do not. Make sure this is clearly addressed during negotiation and spelled out in the order.
Important QDRO Drafting Considerations
When drafting a QDRO for the Lloyd & Mcdaniel 401(k) Profit Sharing Plan, here’s what we recommend:
- Use clear division language (percentage or dollar amount)
- Specify the division date (usually the date of divorce or separation)
- Clarify how to treat gains and losses after the division date
- Identify traditional and Roth balances separately if applicable
- Address any existing loan balances and their treatment
- Include language for post-divorce account segregation or rollover options
We’ve compiled a list of common QDRO mistakes that you’ll want to avoid. A poorly drafted QDRO can delay the division of funds by months—or even years.
How Long Does It Take to Get a QDRO Done?
A QDRO isn’t instant. It has to be drafted, agreed upon, possibly preapproved by the plan administrator, signed by both parties, signed by the judge, submitted to the plan, and then processed. If you’re wondering how long all this takes, check out our guide on the 5 key factors that affect QDRO timelines.
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. Our top priority is protecting your financial future with a QDRO that’s correct, enforceable, and submitted without delay.
Next Steps: What You Should Do Now
- Contact Lloyd & mcdaniel pllc or the benefits provider to obtain the plan’s Summary Plan Description (SPD) and QDRO procedures
- Gather a copy of your divorce decree
- Find out if the account has any loan balances, Roth sub-accounts, or vesting restrictions
- Make sure you know whether you’re dividing based on a dollar amount or percentage—this impacts gains/losses
Still have questions? Learn more in our QDRO resource center, or get in touch today.
State-Specific QDRO Support
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 Lloyd & Mcdaniel 401(k) Profit Sharing 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.