Dividing the Active Motif 401(k) Plan in Divorce
Going through a divorce means splitting up more than homes and bank accounts—retirement plans like the Active Motif 401(k) Plan also come into play. If you or your spouse participated in this retirement plan through Active motif, Inc.., you’ll need a Qualified Domestic Relations Order (QDRO) to divide the account legally.
A QDRO is a court order that tells a retirement plan administrator how to divide retirement benefits between an employee and their spouse or ex-spouse. This process can seem overwhelming, especially with the complexity inherent in 401(k) plans. That’s where understanding your options and getting experienced help matters most.
Plan-Specific Details for the Active Motif 401(k) Plan
Here are the known facts about the plan you’re dividing:
- Plan Name: Active Motif 401(k) Plan
- Sponsor: Active motif, Inc..
- Address: 1914 Palomar Oaks Way, Suite 150
- Organization Type: Corporation
- Industry: General Business
- Status: Active
- EIN: Unknown (required for QDRO processing)
- Plan Number: Unknown (required for QDRO processing)
- Plan Year: Unknown
- Effective Date: Unknown
- Participants: Unknown
- Assets: Unknown
While some plan details are missing, most administrators will provide this information once a QDRO review request or participant authorization is on file. It’s still possible—and common—to move forward with drafting while requesting those missing details.
Understanding 401(k) Division with a QDRO
Why You Need a QDRO
You can’t simply use your divorce agreement to divide the Active Motif 401(k) Plan. Federal law requires a separate court order—a QDRO—that tells the retirement plan how much of the participant’s account goes to the alternate payee (typically the spouse or ex-spouse).
If you don’t get a QDRO, the plan administrator can’t legally transfer or divide the funds, and you could lose your share entirely through plan withdrawals, remarriage, or even death of the participant.
Key Elements the QDRO Must Address
For the Active Motif 401(k) Plan, your QDRO should clearly state:
- The exact percentage or dollar amount awarded
- Whether gains and losses apply from the division date to distribution
- Whether loans are included or excluded from the marital share
- The treatment of any unvested employer contributions
- Which account types (Traditional vs. Roth) are being divided
Common Challenges with 401(k) QDROs
Vesting Schedules and Employer Contributions
401(k) accounts like the Active Motif 401(k) Plan often include matching or discretionary employer contributions. However, these contributions may not be fully vested at the time of divorce. Only the vested portion can be divided through the QDRO.
If you’re not sure how much is vested, request a breakdown from the plan administrator. The QDRO can address what happens to unvested funds—if they later vest, the order can include language giving the alternate payee a share as they become available, or exclude them entirely.
401(k) Loans
What if the participant has taken out a loan from their Active Motif 401(k) Plan? That loan is considered an outstanding balance that technically reduces the total account value. Your QDRO should specify whether to:
- Base the payout on the total value before subtracting the loan (shared responsibility)
- Exclude the loan balance—ensuring the alternate payee doesn’t get penalized
It’s critical to understand who used the loan and for what purpose. Many spouses fairly ask the QDRO to apportion the loan only to the borrowing party.
Handling Roth vs. Traditional Contributions
Some participants may have both Roth and Traditional funds in their Active Motif 401(k) Plan. These account types have different tax treatments:
- Roth 401(k): Contributions are made after-tax. Distributions (if qualified) are tax-free.
- Traditional 401(k): Contributions are made pre-tax. Distributions are taxed as ordinary income.
If funds are split proportionally, each account type should transfer in-kind (Roth stays Roth). This distinction must be accurate in your QDRO, or the plan administrator may reject the order.
QDRO Procedure for the Active Motif 401(k) Plan
Here’s what to expect when dividing the Active Motif 401(k) Plan through a QDRO:
- Gather plan details, including SPD (Summary Plan Description), EIN, and Plan Number
- Draft the QDRO with correct legal and financial terms
- Submit the QDRO for preapproval to the plan administrator (if they accept preapproval)
- File the QDRO with the divorce court and have it signed by a judge
- Send the certified QDRO to the plan administrator for implementation
Be aware that not every administrator allows preapproval. However, it’s ideal when available—it prevents costly rejections later on.
Why It Pays to Work with QDRO Professionals
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.
Common Mistakes to Avoid
Mistakes in QDROs can lead to big disappointments—and lost money. Learn about the pitfalls on our guide to common QDRO mistakes.
Also, time is a factor. Learn about the 5 factors that influence how long QDROs take so you can plan ahead.
Final Tips for Dividing the Active Motif 401(k) Plan
- Always confirm how much of the account is vested
- Get account balances (with and without loan offsets)
- Know what portion is Roth vs. Traditional
- Request the date of marriage, separation, and divorce for accurate tracing
- Include gains and losses from the division date to payout date
Each of these details needs to be addressed in the QDRO for the Active Motif 401(k) Plan. The more precise you are, the smoother the process will go.
State-Specific Help for Your Divorce QDRO
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 Active Motif 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.