Understanding How QDROs Work with the Next Level Logistics 401(k) Plan
Dividing retirement assets during divorce is never simple, especially when you’re dealing with a 401(k) plan like the Next Level Logistics 401(k) Plan, sponsored by Next level logistics LLC. A Qualified Domestic Relations Order (QDRO) is required to split these accounts legally and without triggering taxes or penalties.
At PeacockQDROs, we’ve handled thousands of QDROs from start to finish—including drafting, approval, court filing, and submission to the plan administrator. We know what can go wrong and how to do things the right way. If you’re facing the division of your or your spouse’s 401(k), this guide breaks down exactly how to split the Next Level Logistics 401(k) Plan in your divorce.
Plan-Specific Details for the Next Level Logistics 401(k) Plan
Before drafting a QDRO, it’s critical to understand the specific characteristics of the retirement plan involved. Here’s what we currently know about the Next Level Logistics 401(k) Plan:
- Plan Name: Next Level Logistics 401(k) Plan
- Sponsor: Next level logistics LLC
- Address: 20250718120054NAL0001725969001, 2024-01-01
- EIN: Unknown (you or your attorney may need to request this from the plan administrator when submitting a QDRO)
- Plan Number: Unknown (also must be obtained before final QDRO submission)
- Industry: General Business
- Organization Type: Business Entity
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
Even though some details are missing, many 401(k) plans follow a similar administrative process for accepting QDROs. We recommend contacting the plan administrator for the missing documents before beginning the QDRO process.
Why You Need a QDRO for the Next Level Logistics 401(k) Plan
401(k) plans are considered qualified retirement plans under ERISA (the Employee Retirement Income Security Act of 1974). That means the only way to legally divide the Next Level Logistics 401(k) Plan as part of a divorce settlement is through a court-approved Qualified Domestic Relations Order (QDRO).
Without a QDRO, any transfer of 401(k) funds between spouses has tax consequences and possible early withdrawal penalties. A properly drafted QDRO instructs the plan administrator to divide the account safely and legally.
Key Factors to Consider When Dividing a 401(k) Plan
Employee vs. Employer Contributions
Participant accounts within the Next Level Logistics 401(k) Plan may consist of:
- Employee contributions (always 100% vested)
- Employer matching contributions (subject to a vesting schedule)
During divorce, it’s common for disputes to arise over unvested employer portions. The QDRO should clearly state whether the alternate payee (e.g., the former spouse receiving the benefit) has a right to only vested balances or a portion of future vesting. Most plans only allow division of vested assets as of the date of divorce or QDRO.
Vesting Schedules and Forfeitures
Many 401(k) plans, especially in general business industries like Next level logistics LLC, impose a vesting schedule on employer contributions. If the participant spouse hasn’t worked long enough by the division date, a portion of the employer match may be forfeited—or may not be divisible at all.
It’s important to define the valuation date in your QDRO: Are assets divided as of the divorce date? QDRO date? Or the date of distribution? Be precise. Ambiguity can lead to unequal division.
Outstanding Loans
If the participant has taken a loan from their Next Level Logistics 401(k) Plan, this loan balance affects the account’s net value. Here are a few options:
- The alternate payee’s share can be calculated based on the total account balance minus the loan.
- Or, the alternate payee may receive a proportional share of the loan-adjusted balance.
Some QDROs allow the loan to remain with the participant, while others require repayment before division. Be sure you and your attorney discuss this with the plan administrator before drafting the QDRO.
Traditional vs. Roth 401(k) Subaccounts
Many 401(k) plans now offer both pre-tax (Traditional) and after-tax (Roth) contributions. It’s common for participants to have a mix of both. These need to be handled separately in the QDRO.
For example, if the intent is to give the alternate payee 50% of the account, the division should clearly state whether it’s:
- 50% of just the Traditional balance
- 50% of just the Roth balance
- 50% of each type of subaccount separately
This is one of the most common pitfalls in QDRO drafting. Check out our page on common QDRO mistakes to learn more.
QDRO Drafting and Submission Process
Here’s a simple breakdown of how we at PeacockQDROs typically handle a QDRO involving the Next Level Logistics 401(k) Plan:
- We obtain or request the plan’s QDRO procedures from Next level logistics LLC or the plan administrator.
- We determine missing details like the plan number and EIN, required for the QDRO document.
- We draft the QDRO language to reflect both legal requirements and the unique features of the plan.
- If required, we submit the draft to the plan for preapproval.
- Once approved, we file the QDRO with the divorce court for judge’s signature.
- Finally, we submit the court-signed QDRO to the plan administrator and follow through until completion.
We do all of this for you. Many providers stop after writing the document. We don’t. That’s what makes PeacockQDROs different from firms that only prepare the QDRO and leave you to navigate court procedures and follow-up on your own.
Need details on how long the process might take? Visit our breakdown of the five factors that affect QDRO timing.
Tips for Dividing the Next Level Logistics 401(k) Plan Safely
- Get an updated statement: Always work from the most recent account balance when planning the division.
- Check for multiple account types: Traditional and Roth subaccounts need to be divided separately in the QDRO.
- Speak to the plan administrator: Even though details like the plan number or EIN are missing, administrators typically provide a QDRO packet outlining submission requirements.
- Clarify valuation date in the order: Define exactly what date governs how the account is valued for division purposes.
- Work with a firm that goes beyond drafting: Make sure your QDRO is properly reviewed, signed, filed, and followed up on to ensure it’s implemented correctly.
We’re Here to Help with Your Next Level Logistics 401(k) Plan QDRO
Whether you’re the plan participant or the former spouse entitled to a share of the retirement funds, the right QDRO makes all the difference. At PeacockQDROs, we maintain near-perfect reviews and pride ourselves on a track record of doing things the right way—start to finish.
Visit our main QDRO page to learn more about our services at peacockesq.com/qdros, or contact us directly with your questions.
Final Thoughts
The Next Level Logistics 401(k) Plan must be divided carefully and according to both the law and the plan’s specific requirements. Don’t risk delays, rejections, or accidental tax disasters with a DIY approach. Let professionals help ensure you get everything you’re entitled to—without stress or guesswork.
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 Next Level Logistics 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.