Introduction
Going through a divorce is already stressful—but dividing retirement assets like the Prokeep 401(k) Plan adds another layer of complexity. If you or your spouse has an account through the Prokeep 401(k) Plan, it’s essential to understand how a Qualified Domestic Relations Order (QDRO) works. A QDRO is a legal document that tells the plan administrator how to divide retirement benefits as part of a divorce settlement.
As a QDRO attorney at PeacockQDROs, I’ve helped thousands of clients with all aspects of dividing retirement plans during divorce. This article explains what you need to know if the Prokeep 401(k) Plan is part of your marital estate and how to ensure the division is handled the right way.
Plan-Specific Details for the Prokeep 401(k) Plan
Before we look at how a QDRO applies to this plan, here’s what we know about the Prokeep 401(k) Plan:
- Plan Name: Prokeep 401(k) Plan
- Sponsor: Prokeep Inc.
- Address: 20250723132812NAL0002053939001, 2024-01-01
- EIN: Unknown (must be obtained for QDRO draft)
- Plan Number: Unknown (required for QDRO filing)
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
Since this is a 401(k) plan for a corporate employer in the general business sector, there are specific issues related to how contributions, loans, and vested interests are handled. These all matter when drafting and executing a valid QDRO.
Understanding the Role of a QDRO
A QDRO (Qualified Domestic Relations Order) is a court order that allows retirement benefits to be divided without triggering taxes or penalties. The alternate payee—usually the former spouse—receives a portion of the benefits based on terms set in the divorce agreement and the plan’s rules.
Why You Can’t Skip the QDRO
Even if the divorce judgment awards a portion of the Prokeep 401(k) Plan to a spouse, that language alone won’t accomplish the transfer. The plan administrator requires a QDRO to legally and administratively split the funds. Without it, the account owner keeps the full balance.
Employee and Employer Contributions
The Prokeep 401(k) Plan likely includes both employee deferrals and employer matching contributions. While employee contributions are immediately vested, employer contributions may be subject to a vesting schedule. The QDRO must account for:
- The date range of contributions during the marriage
- Whether employer contributions are fully or partially vested
- Exclusion of unvested or forfeited benefits
At PeacockQDROs, we review statements and plan documents to determine exactly what belongs in the marital pot and ensure the QDRO reflects that.
Vesting Schedules and Forfeited Amounts
One critical detail many people overlook is that employer contribution amounts may not be fully vested at the time of divorce. For example, if a participant has worked at Prokeep Inc. for only a few years, they may not be entitled to 100% of the employer match yet.
Here’s what matters:
- We determine the participant’s years of service with Prokeep Inc.
- We request the vesting schedule from the plan administrator
- We exclude any unvested amounts from the QDRO unless the plan later vests them
If the participant later becomes fully vested, the QDRO may include language entitling the alternate payee to those additional funds. This is one of the strategic provisions we commonly include when appropriate.
Loan Balances and Repayment Obligations
If the participant has taken a loan from their Prokeep 401(k) Plan, the QDRO must address that balance. A loan can impact the account value and the actual amount available for division.
Key Questions We Ask:
- Was the loan taken before or after the date of separation?
- Is the alternate payee responsible for any portion of the loan?
- Should we deduct the loan from the marital portion of the account?
We make sure to clarify these issues during the drafting process. Ignoring loan allocations is one of the most common QDRO mistakes we see.
Roth vs. Traditional 401(k) Subaccounts
Modern 401(k) plans often have both traditional (pre-tax) and Roth (post-tax) accounts. The Prokeep 401(k) Plan may include one or both depending on the participant’s choices.
It’s absolutely critical that the QDRO specifies which type of account the award is coming from. Transferring Roth funds to a traditional IRA—without careful drafting—can trigger tax penalties or reclassification of funds.
Our Best Practice:
- Isolate Roth sources from traditional funds in the QDRO
- Ensure that each type of asset goes to a matching account type
- Coordinate with financial advisors to plan the rollover properly
Required Plan Information for the QDRO
To properly complete a QDRO, we need both the plan name and identifying information. For the Prokeep 401(k) Plan, we already have the name and sponsor, but the plan number and EIN are currently unknown. These must be obtained directly from Prokeep Inc. or the plan administrator before your order can be submitted.
Don’t worry—at PeacockQDROs, we regularly reach out to plan administrators and gather this missing information as part of the process.
What Sets PeacockQDROs Apart
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. When you work with us, you don’t have to worry about delays, mistakes, or paperwork falling through the cracks.
To learn more about how we work or get answers to common questions, check out our QDRO resource center.
How Long Will This Take?
One of the most common questions we hear is, “How long will my QDRO take?” The answer depends on several factors, including how responsive the plan administrator is. Learn the five key factors that determine your timeline and see where to start.
Final Thoughts
Dividing the Prokeep 401(k) Plan during divorce requires attention to detail and a strong understanding of how employer contributions, vesting, and retirement account laws work. The wrong language, missing data, or failure to resolve plan-specific issues can delay your division—or worse, leave your client with nothing.
That’s why working with a team like PeacockQDROs ensures your order gets done right, from start to finish.
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 Prokeep 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.