Introduction
Going through a divorce is never easy—especially when retirement plans like the Encompass 401(k) Plan are involved. If one or both spouses contributed to this plan during the marriage, it’s likely subject to division through a Qualified Domestic Relations Order, or QDRO. A QDRO legally directs the plan administrator to divide retirement account assets between former spouses, while maintaining compliance with ERISA and IRS rules.
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 Encompass 401(k) Plan
Before drafting a QDRO, you must first understand the specific plan you’re dividing. The Encompass 401(k) Plan is sponsored by Encompass technologies development Inc., a corporation operating in the general business industry. Below are the key known details:
- Plan Name: Encompass 401(k) Plan
- Sponsor: Encompass technologies development Inc.
- Organization Type: Corporation
- Industry: General Business
- Address: 420 Linden Street 200
- Status: Active
- Plan Number: Unknown (required for QDRO processing)
- EIN: Unknown (required for QDRO submission)
- Plan Year: Unknown to Unknown
- Participants: Unknown
- Effective Date: Unknown
When submitting a QDRO, you’ll need to confirm missing elements like the plan number and EIN. A simple call or written contact with the plan administrator can usually resolve this. These identifiers are essential—without them, your order may be rejected.
Key Components of the QDRO Process for the Encompass 401(k) Plan
Getting a Copy of the Plan Document
Start by requesting a copy of the Summary Plan Description (SPD) and the plan’s QDRO procedures from Encompass technologies development Inc. These documents outline how and when benefits can be divided.
Identifying Marital vs. Non-Marital Portions
Usually, only the portion of the 401(k) accumulated during the marriage is divided. You’ll want to establish the marriage start and end dates clearly in the order so it’s clear what part of the balance is subject to division.
Specific Issues When Dividing the Encompass 401(k) Plan
Employee and Employer Contributions
This 401(k) likely contains both employee and employer contributions. Only the portion that was contributed during the marriage is usually divided. Make sure to outline whether the alternate payee (the former spouse) is receiving only that portion or also a percentage of future growth on that balance.
Vesting and Forfeitures
Most 401(k) plans offer employer matching contributions that vest over time. If the employee spouse isn’t fully vested in those employer contributions, the unvested portion may not be available for division. Your QDRO should specify whether the alternate payee will benefit from future vesting or only receive the currently vested amount. If you don’t address this, the plan administrator may reject the order or interpret it against your intent.
Loan Balances
If the participant has taken out a loan from their Encompass 401(k) Plan, that must be factored into the asset division. For example:
- If the account has a $120,000 balance and an outstanding $20,000 loan, is the division based on $120,000 or $100,000?
- Will the alternate payee be responsible for any of the loan repayment?
- What if the loan funds were used for marital purposes?
These questions should be addressed clearly in the QDRO. Failure to state how loans should be treated can delay approval or reduce the intended value of the division.
Roth vs. Traditional 401(k) Accounts
The Encompass 401(k) Plan may have both traditional (pre-tax) and Roth (post-tax) account balances. It’s essential to specify how the division will occur between these account types. Typically, funds should remain in their respective tax designations when transferred. If the alternate payee receives funds from both types, it’s crucial the QDRO splits each segment proportionally—or as intended by the parties.
Best Practices for Ensuring a Smooth QDRO Process
- Identify loan balances and determine how they should impact the division
- Request vesting schedules from the administrator so you know what’s divisible
- Make sure your QDRO separates Roth and traditional subaccounts
- Include growth and losses on the alternate payee’s share from the assigned valuation date to the distribution date
- Submit your QDRO for preapproval, if the plan permits it
Common Mistakes to Avoid in Encompass 401(k) Plan QDROs
We’ve seen mistakes that cost clients big when QDROs aren’t carefully drafted. Learn more about the most common missteps by visiting our page on Common QDRO Mistakes.
Timeline Expectations
The QDRO process can take several months if not managed properly. Our experience shows five key factors influence how long it takes. You can read about those here: 5 Factors That Determine QDRO Timing.
At PeacockQDROs, we manage every stage of the process to reduce delays—from plan communication to court filing and administrative approval. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
Working with PeacockQDROs
If you’re dividing the Encompass 401(k) Plan, working with a QDRO attorney who understands the nuances of 401(k) plans—especially those offered by general business corporations like Encompass technologies development Inc.—can save you frustration and costly mistakes down the line.
Visit our QDRO resource center to learn more or contact us directly for help with your QDRO. We offer full-service QDRO solutions that go beyond just the drafting—we do it all from start to finish.
Conclusion and Call to Action
Properly dividing the Encompass 401(k) Plan in your divorce requires attention to details like vesting, loan balances, and the type of contributions you’re splitting. Skipping over these elements or misinterpreting the plan’s rules can leave you with less than you’re entitled to—or nothing at all.
At PeacockQDROs, we get it right the first time. Every QDRO we prepare is tailored with the specific plan in mind. Whether your divorce is pending or long finalized, we’re here to help you get the fair share you deserve.
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 Encompass 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.