Understanding QDROs and the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust
Dividing retirement benefits during divorce can be overwhelming, especially when the retirement account in question is an active workplace 401(k) plan. If one of the parties in your divorce has an account under the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust, you’ll need a carefully drafted Qualified Domestic Relations Order—commonly called a QDRO—to divide it properly and avoid tax penalties. This article outlines key points specific to this plan and provides practical steps toward a smooth QDRO process.
Plan-Specific Details for the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust
The retirement plan you’re dealing with is officially named the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust. Here are the details we know:
- Plan Name: Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust
- Sponsor: Prodigy surgical distribution, Inc..
- Address/Code: 20250513151156NAL0026732912001 (as of 2024-01-01)
- EIN: Unknown (must be requested for QDRO purposes)
- Plan Number: Unknown (must be included in QDRO; find via SPD or contact the administrator)
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
This plan is tied to a private corporation in the General Business sector, which usually means the administrator may follow standard ERISA 401(k) plan protocols but with plan-specific rules we must review. Because the EIN and Plan Number are not publicly listed, your attorney or QDRO preparer should request the Summary Plan Description (SPD) to get the data required to complete the QDRO accurately.
Why You Need a QDRO to Divide the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust
A QDRO is the only legally-approved instrument to divide a qualified retirement plan like a 401(k) without early withdrawal penalties or immediate tax consequences. Without a QDRO, an alternate payee (typically the ex-spouse) cannot receive their court-assigned portion of the plan. Simply including retirement division terms in your divorce decree is not enough—the plan administrator will require a QDRO to make any distributions.
The Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust likely includes both employee deferrals and employer contributions. A proper QDRO must sort out not only how to divide those funds, but also how to handle special issues such as vesting schedules, outstanding loans, and different account types (Roth vs. traditional).
Key QDRO Considerations for This 401(k) Plan
Employee vs. Employer Contributions
401(k) accounts usually contain two types of funds:
- Employee Contributions: These are always 100% vested and directly contributed from the participant’s paycheck.
- Employer Contributions: These are often subject to vesting schedules. If the participant is not fully vested at the date of division, the unvested portion will not be available to the alternate payee.
For the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust, make sure the QDRO specifies whether the alternate payee will share only in the vested portion or be entitled to a share of any future vesting. Most QDROs divide just the vested portion as of the division date.
Vesting Schedules and Forfeitures
If the plan participant is relatively new to Prodigy surgical distribution, Inc.., they may not be 100% vested in employer contributions. The QDRO must account for this. Common practice is to include a clause stating that the alternate payee’s award is limited to the vested portion as of the date of division.
If the QDRO fails to address vesting, it could either overpromise benefits the alternate payee can’t legally receive, or result in delays when the order is submitted. An experienced QDRO attorney will review the vesting schedule in detail to draft an enforceable document.
Plan Loans
If the participant has taken a loan from their 401(k), this affects the actual account balance available for division. You’ll need to decide whether to include or exclude outstanding loan balances from the divisible total.
For example, if there’s a $50,000 balance and a $10,000 loan, should the alternate payee receive 50% of $50,000 (pretending the loan isn’t there) or 50% of the net $40,000? There’s no automatic rule—it depends on what you negotiate and how the QDRO is worded.
Roth vs. Traditional 401(k) Balances
Some plans offer both Roth and pre-tax (traditional) subaccounts. Roth funds are contributed after taxes and will be distributed tax-free in retirement, while traditional contributions are pre-tax and taxed upon distribution.
The QDRO must clearly state whether the award includes both types of funds or just one. If the alternate payee receives a portion of both, this needs to be spelled out. Mixing the two without clarification may cause unnecessary tax confusion or misallocation.
Step-by-Step Process to Divide the Plan
1. Get the Plan Information
Start by requesting the Summary Plan Description (SPD), account statements as of the agreed-upon division date, loan balances, vesting details, and confirmation of Roth vs. traditional balances. These are necessary for accurate drafting.
2. Draft a Plan-Compliant QDRO
Each plan administrator has its own requirements and optional pre-approval process. Some will provide a sample QDRO that must be customized. At PeacockQDROs, we’ve handled thousands of these—we know what Prodigy surgical distribution, Inc.. may be looking for, even if they don’t have a published template.
3. Secure Preapproval (If Available)
Submitting a draft to the plan administrator for preapproval can save major backtracking. Not all plans offer this step, but for those that do, it’s a great way to avoid court rejection or processing delays later.
4. Obtain Court Signature
Once the QDRO is approved (or finalized if no preapproval), you’ll need to file it with the court and return the signed copy to the QDRO preparer or plan administrator.
5. Submit and Monitor the QDRO
After the court signs it, send the QDRO to the plan administrator. The award won’t be processed until they have everything they need. At PeacockQDROs, we don’t just draft your order—we follow it through every phase, including post-submission communications with the administrator.
Common Mistakes to Avoid
Here are a few issues we see when dividing 401(k) plans like the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust:
- Failing to request the SPD and plan rules early
- Not addressing loan balances or vesting cutoffs
- Forgetting Roth/traditional distinctions
- Assuming your divorce decree is enough (it’s not without a QDRO)
You can read more about the most common QDRO mistakes here.
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. Dividing a plan like the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust doesn’t have to be stressful when you have help from experts.
Curious how long it all takes? It depends on several factors. Visit this guide to QDRO timelines for more details.
Final Thoughts
Dividing retirement benefits like those in the Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust takes more than just a line in your divorce decree. Getting the QDRO right requires attention to detail, plan-specific knowledge, and proactive follow-through. Don’t leave this to chance—get expert help and peace of mind.
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 Prodigy Surgical Distribution 401(k) Profit Sharing Plan and Trust, 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.