Understanding QDROs and the Mid-west Spring 401(k) Plan
Dividing retirement assets in a divorce isn’t just about who gets what—it’s about following federal laws to the letter. If you or your spouse has retirement savings in the Mid-west Spring 401(k) Plan, you’ll most likely need a Qualified Domestic Relations Order (QDRO) to divide that account. Without one, the non-employee spouse risks losing their rights to a portion of the retirement savings.
The Mid-west Spring 401(k) Plan is a defined contribution plan sponsored by Mid-west spring & stamping, Inc., a corporation in the general business sector. This article breaks down exactly what you need to know if you’re dividing this specific plan in a divorce, including QDRO requirements, account types, common pitfalls, and how to protect your interests.
Plan-Specific Details for the Mid-west Spring 401(k) Plan
- Plan Name: Mid-west Spring 401(k) Plan
- Sponsor: Mid-west spring & stamping, Inc.
- Address: 20250728125856NAL0000790435001, 2024-01-01
- EIN: Unknown (you will need to request this during QDRO preparation)
- Plan Number: Unknown (will also be required for drafting and submission)
- Industry: General Business
- Organization Type: Corporation
- Status: Active
- Participants: Unknown
- Plan Year: Unknown
- Effective Date: Unknown
- Assets: Unknown
Since the plan number and EIN are missing from publicly available data, these will need to be confirmed through plan documents or HR if you are preparing your QDRO. They are essential pieces of information, especially when submitting the order to the plan administrator.
Key QDRO Considerations for 401(k) Plans
Unlike pensions, 401(k) plans like the Mid-west Spring 401(k) Plan are account-based. That means a specific account balance can be divided between spouses, but several issues must be addressed in the QDRO to ensure a fair and enforceable division.
Employee vs. Employer Contributions
The account balance typically includes both employee and employer contributions. However, employer contributions may be subject to a vesting schedule. Any unvested contributions could be forfeited if the employee spouse separates from employment before becoming fully vested. Your QDRO should clarify whether the alternate payee (the non-employee spouse) is awarded a share of only vested funds or also entitled to any future vesting.
Vesting Schedules
It’s common for employer contributions in corporate 401(k) plans to vest over time (for example, 20% per year). When dividing the Mid-west Spring 401(k) Plan, knowing what portion of employer contributions are vested is critical. The QDRO needs to address whether the distribution is based on the account’s full value or only the vested balance as of a specific date.
Loan Balances
If the employee spouse has taken out a loan from the Mid-west Spring 401(k) Plan, that loan affects the net account balance. A key decision: should the alternate payee share in the account including or excluding the loan balance? There’s no one-size-fits-all answer—some QDROs reduce the balance by the outstanding loan, while others award based on the total balance, loan included. It depends on the parties’ agreement and what’s fair under the circumstances. Either way, the QDRO must make this clear.
Roth vs. Traditional 401(k) Funds
Some 401(k) plans include both traditional (pre-tax) and Roth (post-tax) sub-accounts. These are treated differently by the IRS. If the Mid-west Spring 401(k) Plan contains both, it’s critical that the QDRO defines the division clearly—either splitting each account type proportionally or awarding only one type over the other. Roth funds that are transferred must remain Roth funds in the alternate payee’s account.
Drafting a QDRO for the Mid-west Spring 401(k) Plan
To be accepted, the QDRO for this plan must comply with federal ERISA rules and the specific administrative rules of Mid-west spring & stamping, Inc.’s plan administrator. A typical process includes:
- Confirming the plan’s name, number, and administrator
- Determining the account balances and types as of the agreed-upon date
- Drafting language that covers loans, vested and unvested funds, and Roth assets
- Seeking pre-approval by the plan administrator (if permitted)
- Filing the QDRO with the court
- Submitting the signed order to the plan
- Following up until full implementation by the plan
It’s not enough to have a QDRO drafted—you need to get it approved and processed correctly, or the funds won’t move. That’s why so many people choose professionals to handle the full process.
Common Mistakes in QDROs for 401(k) Plans
Over the years, we’ve seen divorcing parties—and even attorneys—make the same costly mistakes. For example:
- Failing to specify how loan balances should be handled
- Leaving out language about vesting or risking loss of future employer contributions
- Splitting accounts without accounting for Roth sub-accounts
- Using outdated or incorrect plan information (wrong plan number, sponsor name, or administrator)
We cover several of these traps in our article Common QDRO Mistakes. A little attention to detail now can prevent months—or even years—of delays and financial loss later.
Why Choose 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. Whether you’re dividing a simple 401(k) or one with complicated account types and loans like the Mid-west Spring 401(k) Plan, we can help make sure it’s done properly. Learn more about our QDRO services here.
How Long Will It Take?
Each QDRO has its own timeline depending on the complexity, the plan’s response time, and court processing. Read about the 5 key factors that affect QDRO timing.
Start the Process with Confidence
If you’re dividing the Mid-west Spring 401(k) Plan, don’t risk errors that could cost you thousands. Have it handled the right way, from A to Z. Reach out to us for a consultation or begin the process now.
Final Thoughts
The division of the Mid-west Spring 401(k) Plan in divorce may seem straightforward at first glance, but account types, loans, vesting, and tax treatment add layers of complexity. A well-drafted and properly processed QDRO is the only way to ensure your share of retirement funds is secure and distributed in compliance with both federal law and the plan’s unique rules.
We’re here to protect your interests and get it right the first time.
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 Mid-west Spring 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.