Dividing the International Motor Freight, Inc.. 401(k) Plan During Divorce
Dividing retirement accounts in divorce is often one of the most financially significant—and complex—steps in the process. If you or your spouse participates in the International Motor Freight, Inc.. 401(k) Plan, you’ll likely need a Qualified Domestic Relations Order (QDRO) to split those assets legally and properly. At PeacockQDROs, we’ve helped thousands of clients complete QDROs from beginning to end, so you don’t have to navigate it alone.
This article breaks down how a QDRO is used to divide the International Motor Freight, Inc.. 401(k) Plan and what divorcing couples need to consider, especially when dealing with loan balances, Roth accounts, and the impact of vesting schedules on employer contributions.
What Is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order (QDRO) is a specialized court order required to divide certain retirement accounts—like the International Motor Freight, Inc.. 401(k) Plan—between spouses in a divorce. Without it, the plan administrator can’t legally transfer funds to the non-employee spouse (the “alternate payee”).
Even if your court judgment or settlement says a retirement account should be divided, that’s not enough. The QDRO is the tool that instructs the plan administrator how to divide the account and protects both parties from tax penalties.
Plan-Specific Details for the International Motor Freight, Inc.. 401(k) Plan
Below are the available details we know about the plan:
- Plan Name: International Motor Freight, Inc.. 401(k) Plan
- Sponsor: International motor freight, Inc.. 401(k) plan
- Address: 20250130080936NAL0000497873001, 2024-01-01
- Employer Identification Number (EIN): Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
The plan falls under the general business sector and is sponsored by a corporate employer. This matters because corporate 401(k) plans typically offer employer matching, have vesting schedules, and sometimes allow participant loans—all key elements when drafting a QDRO.
Key QDRO Considerations for the International Motor Freight, Inc.. 401(k) Plan
1. Employee and Employer Contributions
The QDRO needs to address both the employee’s elective deferrals and any employer contributions made under the International Motor Freight, Inc.. 401(k) Plan. If the divorcing parties agree to a 50/50 division of the account accrued during the marriage, your attorney should ensure that both employee and employer contributions accrued during that period are included—when vested.
2. Vesting Schedules
Most corporate 401(k) plans like this one include a vesting schedule. This means the employee gradually earns the right to employer contributions over time. If your spouse isn’t fully vested, some of the employer-match portion may not be divisible. A well-written QDRO will clarify whether your share includes only vested amounts as of the divorce date or if you are entitled to a portion of future vesting.
3. Addressing 401(k) Loan Balances
If the participant spouse has taken a loan from the 401(k) account, it typically reduces the plan balance available for division. Here are two ways such loans can be handled in a QDRO:
- Exclude the loan from calculation, giving the alternate payee a share of the balance net of the loan
- Treat the loan as if it were part of the plan value, giving the alternate payee a portion of the gross account
The best approach depends on what the divorcing parties agree to. However, it’s critical that the loan be disclosed to your QDRO preparer.
4. Roth vs. Traditional 401(k) Accounts
The International Motor Freight, Inc.. 401(k) Plan may have both pre-tax (traditional) and post-tax (Roth) accounts. These are taxed differently upon withdrawal. The QDRO should preserve the tax character of each type of account. For example, Roth funds should be transferred as Roth funds, so the alternate payee benefits from tax-free withdrawals later on.
Be sure your QDRO preparer knows the type of funds involved to keep the treatment accurate and IRS-compliant.
What the QDRO Must Include
To divide the International Motor Freight, Inc.. 401(k) Plan, the QDRO must include certain required information:
- Participant and alternate payee’s names and last known addresses
- Social Security Numbers (submitted confidentially)
- EIN and plan number of the International motor freight, Inc.. 401(k) plan (as soon as available)
- Specific identification of how the benefits should be divided
- Address what happens in the event of the participant’s death
This is where experience matters. At PeacockQDROs, we make sure every detail is covered so the plan administrator accepts the order without delay.
QDRO Steps for the International Motor Freight, Inc.. 401(k) Plan
- Collect plan statements, divorce judgment, and any negotiated agreement
- Work with a QDRO attorney to draft the order based on what was agreed in the divorce
- Submit the proposed QDRO to the International Motor Freight, Inc.. 401(k) Plan administrator for preapproval (if allowed)
- Take the approved order to court for the judge’s signature
- Submit the signed QDRO to the plan administrator for final approval and processing
One of the biggest mistakes we see is couples assuming the court’s judgment alone divides the retirement accounts. It doesn’t. The QDRO must be processed separately.
Common QDRO Mistakes to Avoid
Some frequent issues we address include:
- Failing to include unvested employer contributions
- Overlooking outstanding loan balances and miscalculating net account value
- Drafting generic QDRO language that doesn’t fit the plan structure
- Not preserving tax status of Roth 401(k) funds
See our guide on common QDRO mistakes to be sure your order avoids these costly errors.
Why Work with 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. Every QDRO we prepare is customized for the specific plan, the specific divorce agreement, and your goals. We also factor in how long it typically takes plan administrators to process their orders—see our article on the 5 timing factors that affect your QDRO.
Final Thoughts
Dividing the International Motor Freight, Inc.. 401(k) Plan isn’t something you want to risk with vague language or missing information. Whether you’re the employee or the alternate payee, it’s critical to get your QDRO 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 International Motor Freight, Inc.. 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.