Introduction
Dividing retirement assets during a divorce can be one of the most financially significant—and complicated—parts of the process. If you or your spouse has savings in the Rare Beauty, LLC 401(k) Plan, it’s crucial to understand how to divide this specific account properly. You’ll likely need a Qualified Domestic Relations Order (QDRO) to assign a portion of the 401(k) to a former spouse. But not all QDROs are alike. The rules for dividing this type of plan involve complex issues like vesting schedules, whether contributions are pre-tax or Roth, and whether there are outstanding loans.
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 Rare Beauty, LLC 401(k) Plan
Before discussing how to divide this plan in divorce, it’s important to look at the specific plan information:
- Plan Name: Rare Beauty, LLC 401(k) Plan
- Sponsor: Rare beauty, LLC 401(k) plan
- Address: 222 N Pacific Coast Hwy, 2nd Floor
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- EIN: Unknown (required for QDRO processing—ask HR or plan administrator)
- Plan Number: Unknown (required for QDRO—often located on plan statements)
- Effective Date: Unknown
- Plan Year: Unknown
- Number of Participants / Assets: Unknown
Even though some elements are listed as ‘unknown,’ they’ll need to be identified as part of the QDRO drafting process. A good attorney or QDRO firm can help you obtain them directly from Rare beauty, LLC 401(k) plan’s plan administrator.
What Is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order (QDRO) is a legal document that allows a retirement plan to pay a portion of benefits to a former spouse, known as the “alternate payee,” without triggering taxes or early withdrawal penalties. Without a QDRO, the plan simply cannot divide the Rare Beauty, LLC 401(k) Plan to pay benefits to the non-employee spouse.
Who Handles the Rare Beauty, LLC 401(k) Plan?
Since Rare beauty, LLC 401(k) plan is a private business entity in the general business category, its retirement plan is likely administered by a large investment firm or third-party administrator. Submitting a QDRO to the wrong place can cause delays or outright rejections, which is why part of the QDRO process includes identifying and confirming the correct plan administrator.
QDRO Strategies for the Rare Beauty, LLC 401(k) Plan
1. Employee vs. Employer Contributions
In many 401(k) plans, including the Rare Beauty, LLC 401(k) Plan, both the employee and the employer contribute to the account. When dividing assets through a QDRO, it’s important to distinguish which contributions are marital and which are not:
- Employee contributions are typically considered marital assets if made during the marriage.
- Employer contributions may be subject to a vesting schedule, affecting what portion can be divided.
Make sure your QDRO addresses both components and ensures you aren’t assigning unvested assets to a spouse who cannot receive them yet.
2. Understanding and Applying Vesting Schedules
Employer contributions in 401(k) plans like the Rare Beauty, LLC 401(k) Plan often follow a vesting schedule. This means that the employee doesn’t fully own these contributions until they’ve worked at the company for a certain period of time. If the employee spouse is not 100% vested at the time of divorce, the non-employee spouse may be limited in what they can receive.
A properly drafted QDRO will specify whether it’s dividing the vested balance only or includes a post-divorce share of future vesting. PeacockQDROs can help you understand the best approach based on your state’s case law and your negotiation outcome.
3. 401(k) Loan Balances
If there is an outstanding loan in the Rare Beauty, LLC 401(k) Plan, it affects the plan balance and the amount available to be divided. Important considerations include:
- Which spouse is responsible for the loan?
- Will the alternate payee’s share be calculated before or after subtracting the loan balance?
- Does the QDRO divide the gross or net balance?
Failing to clarify loan treatment in a QDRO can lead to disputes or improper distributions later.
4. Roth vs. Traditional 401(k) Contributions
The Rare Beauty, LLC 401(k) Plan may include both traditional (pre-tax) and Roth (after-tax) contributions. These account types are taxed differently, both now and in the future. A QDRO should:
- Specify how each type of account is to be divided
- Ensure the alternate payee receives the appropriate tax treatment
- Account for the fact that Roth balances may have different distribution rules
If these aren’t addressed clearly, the plan administrator might reject the QDRO or allocate the wrong account type to the alternate payee.
QDRO Do’s and Don’ts for the Rare Beauty, LLC 401(k) Plan
- DO identify if any portion of the plan is non-marital or pre-marital
- DO provide exact dollar or formula-based division language
- DO confirm if the plan allows preapproval of the QDRO draft before court filing
- DON’T rely on generic QDRO templates – they almost never meet the plan’s specific admin requirements
- DON’T ignore loans, Roth components, or forfeitures due to incomplete vesting
What Happens After the QDRO Is Drafted?
Once your QDRO is correctly drafted, it must go through several key steps:
- Submit to Plan Administrator for preapproval (if possible)
- File with the court for judge’s signature
- Submit signed order to the plan
- Follow up to confirm processing and timeline of distribution
This process can take anywhere from a couple of weeks to several months depending on the plan and judge availability. We break it down here: How long does it take to get a QDRO done?
Why You Shouldn’t DIY This One
The Rare Beauty, LLC 401(k) Plan is not a simple plan. It may include multiple contribution types, loans, and vesting layers. Errors in your QDRO could result in:
- Delayed distributions
- Plan administrator rejections
- Taxable events for the wrong spouse
We’ve also seen too many cases where people rely on cheap online form generators or general divorce attorneys—and end up with rejected orders or years of delay. For QDROs, experience matters. If you want to see some of the most common QDRO mistakes we fix, check out this guide: Common QDRO Mistakes.
Why Choose PeacockQDROs
At PeacockQDROs, we’re known for getting things right the first time. We don’t just draft a document—we handle the entire QDRO process for you from start to finish. That includes court filings, communications with plan administrators, and ensuring distributions are processed correctly. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
Learn more about our QDRO services for all retirement plans here: www.peacockesq.com/qdros/
Final Thoughts
Dividing a retirement account like the Rare Beauty, LLC 401(k) Plan during a divorce isn’t just paperwork—it’s a financial transaction with long-term implications. Make sure your QDRO is done properly, completely, and legally enforceable. Your future financial security may depend on it.
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 Rare Beauty, 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.