Introduction
If you or your spouse has a retirement account through the Groundsystems, LLC 401(k) Profit Sharing Plan and you’re going through a divorce, it’s important to understand how this plan can be divided using a Qualified Domestic Relations Order (QDRO). Getting this done right ensures that both parties receive what they’re entitled to under the law, while avoiding costly mistakes or delays.
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.
What Is a QDRO?
A Qualified Domestic Relations Order (QDRO) is a legal document that allows for the division of qualified retirement plans between divorcing spouses. Without a QDRO, the plan administrator cannot legally pay benefits to anyone other than the employee participant, even if a divorce decree orders it.
For 401(k) plans like the Groundsystems, LLC 401(k) Profit Sharing Plan, the QDRO authorizes the plan to split retirement assets between the “participant spouse” (the employee) and the “alternate payee spouse” (the non-employee).
Plan-Specific Details for the Groundsystems, LLC 401(k) Profit Sharing Plan
Here’s what we know about this plan:
- Plan Name: Groundsystems, LLC 401(k) Profit Sharing Plan
- Sponsor: Groundsystems, LLC 401(k) profit sharing plan
- Address: 20250219125708NAL0003008627001, 2024-01-01
- EIN: Unknown (but required for QDRO submission)
- Plan Number: Unknown (also required)
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
Even though some plan details are unavailable to the public, they are essential when drafting a QDRO. Getting the EIN and Plan Number is critical, and we routinely handle that as part of our full-service approach.
Key QDRO Considerations for the Groundsystems, LLC 401(k) Profit Sharing Plan
The Groundsystems, LLC 401(k) Profit Sharing Plan is a 401(k)-type plan, which brings several unique issues into play. Below are some of the most important factors to consider when preparing a QDRO for this plan.
1. Employee and Employer Contributions
401(k) plans usually contain both employee (pre-tax or Roth) and employer contributions (including profit-sharing or matching). It’s essential to make clear in the QDRO whether the alternate payee should receive a share of just the employee’s contributions, the employer contributions, or both.
Employer contributions may be subject to a vesting schedule, so any unvested amounts as of the valuation date may not be included in the alternate payee’s portion.
2. Vesting Schedules and Forfeitures
Because this is a profit-sharing plan, Groundsystems, LLC 401(k) Profit Sharing Plan may apply a vesting schedule to employer contributions. The plan participant typically earns ownership of those contributions over a number of years.
If the participant is not fully vested at the time of division, only the vested portion will be eligible for division under the QDRO. The unvested portion could be forfeited entirely unless the participant remains employed and continues to vest.
3. Loans Against the 401(k) Plan
Many employees borrow against their 401(k)s. Whether or not the loan reduces the balance available to the alternate payee depends on the QDRO’s terms. In most cases, we recommend explicitly addressing loans in the QDRO to clarify whether:
- The loan balance will be subtracted from the participant’s share only
- The alternate payee will share in the reduced value
This is particularly important when the loan was taken out close to the divorce date or heavily affects the account’s value.
4. Roth vs. Traditional Contributions
This plan may contain both Roth (after-tax) and traditional (pre-tax) subaccounts. These accounts have different tax consequences for distributions. A well-drafted QDRO should preserve the character of these subaccount types.
Don’t let these nuances be an afterthought. If the QDRO fails to specify how these account types are divided, processing errors or unexpected tax treatment may result. At PeacockQDROs, we ensure this is caught and addressed correctly from the start.
QDRO Drafting Tips for the Groundsystems, LLC 401(k) Profit Sharing Plan
Be Precise About the Division Formula
The QDRO should specify exactly how the alternate payee’s share is calculated. Most common options are:
- A fixed dollar amount
- A percentage of the account as of a specific date
- A formula based on the length of the marriage
Ambiguity in these terms will cause processing delays or outright rejection by the plan administrator.
Include Valuation Date and Earnings Provisions
The QDRO must also state the valuation date (the date on which the plan account is measured) and whether the alternate payee is entitled to investment gains or losses from that date until distribution. For fluctuating accounts like 401(k)s, this can make a big financial difference.
Include Required Plan Information
The EIN and Plan Number must be stated on the QDRO. Because these were not provided publicly, they must be confirmed during the drafting process. We retrieve these details directly when necessary to avoid administrator rejection.
Common Mistakes When Dividing a 401(k) Plan
401(k)s bring their own set of pitfalls. Avoid issues that can cause delay or even loss of benefits:
- Failing to specifically divide Roth and traditional subaccounts
- Ignoring loan balances that reduce the account
- Not clarifying vesting status and forfeitures
- Omitting earnings language, leading to unfair results
We go through each of these items in detail with clients and confirm every piece of information with the plan administrator before finalizing. Learn more at our resource on common QDRO mistakes.
How Long Does It Take?
Every QDRO has to go through multiple steps—drafting, pre-approval (if applicable), court filing, signature from both parties, and administrator approval. Timing depends on a few practical factors, like responsiveness from your ex-spouse and the plan’s review process. Read more about the five things that can affect your QDRO timeline.
Why Work with PeacockQDROs?
Because retirement funds are too important to leave to guesswork, we handle the entire process from start to finish. We draft, file with the court, and communicate with the plan administrator. You don’t have to chase signatures or wait on hold with HR—we do it for you. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
If your divorce involves the Groundsystems, LLC 401(k) Profit Sharing Plan, let us help you protect your rights and avoid unnecessary delays.
Final Thoughts
The Groundsystems, LLC 401(k) Profit Sharing Plan may be just one of several assets on the table during divorce, but it’s often among the most valuable. Don’t let vague orders, missing plan info, or misunderstood tax treatment cost you thousands—or delay access to your rightful benefits.
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 Groundsystems, LLC 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.