Dividing the Springwell, LLC 401(k) Plan in Divorce
If you or your spouse has a 401(k) through Springwell, LLC, you’ll need a document called a Qualified Domestic Relations Order—known as a QDRO—to divide those retirement benefits in a divorce. This process can be confusing, especially with the unique details of the Springwell, LLC 401(k) Plan. As QDRO attorneys who’ve worked with thousands of retirement accounts, we know what to expect and how to avoid common pitfalls.
Plan-Specific Details for the Springwell, LLC 401(k) Plan
Before we get into the QDRO process, here’s what we know about this specific retirement plan:
- Plan Name: Springwell, LLC 401(k) Plan
- Sponsor: Springwell, LLC 401(k) plan
- Address: 20250801102709NAL0007094625001, 2024-01-01
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Assets: Unknown
Even with limited plan-specific data, we can still move forward because most 401(k) plans follow common rules for QDRO compliance.
Why You Need a QDRO to Divide This 401(k)
The Springwell, LLC 401(k) Plan is governed by ERISA (the Employee Retirement Income Security Act). This law protects retirement assets, which means the plan administrator can’t pay part of the account to a former spouse without a court-approved QDRO. It doesn’t matter what your divorce agreement says—without a QDRO, the plan will not distribute benefits.
Who Qualifies to Receive Payments?
The spouse receiving the benefits is called the “Alternate Payee.” This can be a current or former spouse. A QDRO allows the Alternate Payee to receive their share of the 401(k) directly from the plan without triggering a taxable event for the account holder.
How a QDRO Works for the Springwell, LLC 401(k) Plan
Here’s the typical process to divide the Springwell, LLC 401(k) Plan using a QDRO:
- Determine the amount to be divided (usually expressed as a percentage or dollar amount of the account)
- Draft the QDRO to meet the legal and plan-specific format
- Submit the proposed QDRO to the plan administrator for preapproval (if the plan offers it)
- File the signed QDRO with the divorce court
- Send the court-certified copy to the plan for processing
This process can take weeks or months, depending on how responsive the plan administrator is and how well the QDRO is prepared. That’s why it’s critical to get it right the first time.
Special 401(k) Factors to Consider
401(k) plans like the Springwell, LLC 401(k) Plan can present extra complications. Here are a few situations that often come up:
Unvested Employer Contributions
If your spouse isn’t fully vested in employer contributions, those amounts may not be divisible in the QDRO. That means only the vested amount as of the cutoff date—usually the date of separation or divorce—is eligible to be split. Know the vesting schedule and confirm what’s actually available for division.
Loan Balances
401(k) loans reduce the participant’s balance. In many plans, the loan remains the responsibility of the account holder and is excluded from the Alternate Payee’s portion. Make sure the QDRO addresses how any outstanding loans are treated—especially whether the amount is deducted from the divisible balance before it’s split.
Roth vs. Traditional 401(k)
Many 401(k) plans, including potentially the Springwell, LLC 401(k) Plan, contain both pre-tax (traditional) and after-tax (Roth) sources. Roth and traditional account types are treated differently for tax purposes. A proper QDRO must specify whether the Alternate Payee’s distribution comes from Roth, traditional, or proportional sources. If this isn’t handled properly, it can result in unnecessary taxation or processing delays.
Documentation You’ll Need
To draft and process a QDRO for the Springwell, LLC 401(k) Plan, you’ll need:
- Legal names and addresses of both spouses
- Date of marriage and date of separation (in community property states)
- An accurate plan name: Springwell, LLC 401(k) Plan
- Plan Sponsor name: Springwell, LLC 401(k) plan
- Plan Number and EIN if available (your attorney can often request this or get it from the plan administrator)
- Share percentage or dollar amount to be assigned to the Alternate Payee
Common Mistakes That Can Delay the QDRO
At PeacockQDROs, we’re often hired to fix or redo QDROs prepared by other firms. Here are a few issues we see repeatedly:
- Failing to address separate Roth balances
- Ignoring or misapplying the vesting schedule
- Not accounting for outstanding loans
- Writing the plan name or sponsor name incorrectly (e.g., using all caps or abbreviations)
- Failing to follow the administrator’s QDRO guidelines
Check out our review of common QDRO mistakes to avoid costly setbacks.
The QDRO Timeline: How Long Will It Take?
How fast can you get your QDRO done? It depends on multiple factors, including how well the QDRO is drafted, the court’s timeline, and the plan administrator’s review process. We break it down in our guide to the 5 factors that determine how long QDROs take.
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 it’s the Springwell, LLC 401(k) Plan or another employer-sponsored plan, we make sure your QDRO is bulletproof.
Next Steps
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 Springwell, 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.