Introduction
Dividing retirement benefits in a divorce can be complicated—especially when those benefits involve a 401(k) plan like the Murphy Services Inc.retirement Plan. If you’re divorcing and one or both of you have benefits in this retirement plan, you’ll likely need a Qualified Domestic Relations Order (QDRO) to legally split the account. But not all QDROs are the same, and each plan has its own rules.
In this article, we’ll walk you through what you need to know when dividing the Murphy Services Inc.retirement Plan in your divorce, how to avoid common mistakes, and why precise drafting around 401(k) terms like vesting, loans, and Roth contributions matters.
Plan-Specific Details for the Murphy Services Inc.retirement Plan
- Plan Name: Murphy Services Inc.retirement Plan
- Plan Sponsor: Murphy services Inc..retirement plan
- Address: 20250725130201NAL0003190211001, 2024-01-01
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Corporation
- Status: Active
- Plan Type: 401(k)
Since the employer is a corporation operating in general business, this plan is likely managed by a third-party administrator. This means you need to account for extra administrative processing time and plan-specific procedures when drafting and submitting your QDRO.
What Makes Dividing a 401(k) Like the Murphy Services Inc.retirement Plan Unique
1. Contribution Source Matters
401(k) plans consist of different types of contributions—mainly employee deferrals and employer matches. The QDRO must specify how each source of money should be divided.
- Employee Contributions: These are always 100% vested and fully divisible.
- Employer Contributions: These may come with a vesting schedule. Only the vested portion can be divided.
If you are the alternate payee (spouse receiving the benefit), be aware that you typically can’t claim unvested employer contributions. A good QDRO will address this clearly to avoid rejection by the plan administrator.
2. Addressing Plan Loans
Another common issue in the Murphy Services Inc.retirement Plan—or any 401(k)—is how to handle plan loans. If the participant has an outstanding loan:
- It’s not automatically divided.
- The QDRO must clearly state whether the loan remains the responsibility of the participant or is factored into the alternate payee’s share.
Failing to address loan balances can throw off the division and result in disputes or rejections. At PeacockQDROs, we always check for loan activity and include the proper language.
3. Roth vs. Pre-Tax Money
Many 401(k) plans now include both traditional (pre-tax) and Roth (after-tax) accounts. The tax status carries over to the alternate payee, so if you’re splitting a plan that includes both types:
- Your QDRO must specify the proportion from Roth and traditional if both are present.
- Failure to do so could lead to tax reporting problems or incorrect account setups.
We’ve seen this issue delayed QDRO implementation by months—don’t skip it.
Vesting in the Murphy Services Inc.retirement Plan
Vesting schedules are a key feature in 401(k) plans like the Murphy Services Inc.retirement Plan. Simply put, employer contributions often require several years of service before becoming fully vested. Only the vested portion is subject to QDRO division.
For example, if the participant spouse worked at Murphy services Inc..retirement plan for only two years and the vesting schedule requires three years for full rights to employer contributions, then the alternate payee cannot claim the unvested portion. A well-crafted QDRO will avoid requesting nonvested funds, which could lead to rejection by the plan administrator.
Why Properly Drafting a QDRO Matters
The biggest mistake we see? People think all QDROs are just fill-in-the-blank forms. They’re not. Every plan—especially 401(k) plans like the Murphy Services Inc.retirement Plan—has unique procedures, requirements, timelines, and administrators.
Common QDRO mistakes include:
- Using outdated or wrong plan names
- Failing to divide each contribution source separately
- Ignoring loans or stating conflicting loan treatment
- Not addressing Roth vs. pre-tax divisions
Visit our guide on common QDRO mistakes for more examples we’ve encountered and corrected.
The PeacockQDROs Difference
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 everything:
- Initial intake and document review
- Custom drafting with plan-specific language
- Preapproval submission when required
- Court filing logistics
- Final submission to the plan administrator
- Follow-up until benefits are divided
That’s what sets us apart from firms that only prepare the document and hand it off to you. Our job isn’t done until your QDRO is fully processed and accepted.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. That includes following each plan’s rules—including those for the Murphy Services Inc.retirement Plan—down to the fine print.
Need Answers? Let’s Talk
If you’re dividing the Murphy Services Inc.retirement Plan and you need help with timing expectations, we recommend reading our article on 5 key timing factors for QDROs. From plan responsiveness to court delays, there are a few moving parts that can affect your divorce timeline.
For more general insights, check our QDRO resources page for knowledge built from experience—not theory. Or just contact us directly. We’re here to help.
Final Tip: Don’t Wait Too Long
Too many people treat the QDRO as something to “do later.” Big mistake. The plan won’t divide the assets until a valid, court-approved QDRO is in hand. Delays can mean missed investment gains or lost access to benefits—especially if your ex-spouse moves or retires.
Call to Action
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 Murphy Services Inc.retirement 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.