Understanding QDROs and How They Apply to the Masters Building Solutions, Inc.. 401(k) Plan
Dividing a 401(k) in divorce isn’t as simple as splitting a checking account. Retirement funds often have legal protections and administrative rules that require a special court order—called a Qualified Domestic Relations Order, or QDRO. If you or your spouse has money in the Masters Building Solutions, Inc.. 401(k) Plan, you need to understand the rules that apply to dividing this retirement plan during divorce.
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.
Plan-Specific Details for the Masters Building Solutions, Inc.. 401(k) Plan
Here’s what we know about the plan and its sponsor. These details are crucial when preparing a QDRO and should be referenced clearly in the court order:
- Plan Name: Masters Building Solutions, Inc.. 401(k) Plan
- Plan Sponsor: Masters building solutions, Inc.. 401(k) plan
- Sponsor Address: 930 STEWART STREET
- Dates in Record: 2024-01-01 to 2024-12-31
- Effective Date: 2005-09-09
- Industry: General Business
- Organization Type: Corporation
- Plan Number: Unknown (must be obtained or confirmed before submitting QDRO)
- Employer Identification Number (EIN): Unknown (must be identified before filing)
- Status: Active
Even though the EIN and Plan Number are currently unknown, you or your attorney can typically get this information from HR, plan statements, or by contacting the plan administrator. It’s essential to have this information correct on your QDRO, or the plan may reject it outright.
What Makes Dividing a 401(k) Different
The Masters Building Solutions, Inc.. 401(k) Plan is a defined contribution plan. That means the value of the account is based on how much the employee—and in some cases, the employer—have contributed, plus investment earnings. Unlike pensions, there’s no guaranteed lifetime benefit. Instead, the balance gets divided between the participant and the alternate payee (usually the ex-spouse).
Here’s where things get tricky: contributions, vesting, loans, and Roth balances can all influence how much is available to split and how it gets split.
Employee and Employer Contributions
In most divorces, a QDRO will assign a portion of the participant’s account to the alternate payee based on contributions made during the marriage. This includes both employee contributions (deferrals from their paycheck) and employer contributions made by Masters building solutions, Inc.. 401(k) plan.
But only the vested portion of employer contributions is usually divisible. If the participant isn’t fully vested, some employer contributions could be forfeited if the employee separates from the company.
Vesting Schedules Matter
The Masters Building Solutions, Inc.. 401(k) Plan likely has a vesting schedule for employer match or non-elective contributions, which defines how much of those employer contributions the employee gets to keep over time. For example, the employer’s contributions may vest over six years. Only vested funds can be divided through a QDRO.
Your QDRO should clearly state whether the alternate payee is entitled only to vested portions or includes a right to future vesting. This is especially critical if the employee is still working there.
What About Loan Balances?
If the employee has taken out a loan against their 401(k), the QDRO must carefully state whether the alternate payee’s share includes or excludes that loan balance. There are two approaches:
- With the loan included: The loan balance remains part of the total account balance for division. This benefits the alternate payee, who receives a larger gross share.
- With the loan excluded: The loan is subtracted before calculating the alternate payee’s portion. This benefits the participant, who retains full responsibility for repaying the loan.
You should decide this early in the negotiation process, because it directly affects how much each person receives in the final split.
Distinguishing Between Roth and Traditional Funds
Some participants in the Masters Building Solutions, Inc.. 401(k) Plan may have both pre-tax (traditional) and after-tax (Roth) contributions. These elements need to be kept separate in the division, as they’re taxed differently when withdrawn.
The QDRO needs to explicitly state whether distributions to the alternate payee are coming from the Roth portion, the traditional portion, or proportionally from both. Failing to specify this could create tax headaches or delays in processing the order.
How Long Does the QDRO Process Take?
People are often surprised that getting a QDRO done can take several months. The main delay usually comes from getting plan preapproval, dealing with court procedures, or improper formatting. At PeacockQDROs, we do it all—including follow-up with the administrator—to keep your case moving.
Want to know what affects how long a QDRO takes? Read: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Common Pitfalls to Avoid
- Failing to specify pre-tax vs. Roth balances
- Ignoring loan balances
- Using the wrong plan name or sponsor name
- Leaving out language about vesting
- Not using the exact legal data for the Masters Building Solutions, Inc.. 401(k) Plan
Mistakes like these can delay your divorce, require redrafting, or reduce your actual retirement payout. See more: Common QDRO Mistakes.
Why Work With PeacockQDROs?
We’re not just a form provider. At PeacockQDROs, we guide you through each step of the QDRO process. We draft the order, get preapproval (if the plan allows it), file it properly with the court, send it to the plan administrator, and follow up until the funds transfer is complete.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Don’t risk your retirement on a DIY template or a generalist who’s never handled this plan before. We’ve done this thousands of times—for all types of plans and clients.
Learn more about our work at our QDRO service page.
Final Thoughts
The Masters Building Solutions, Inc.. 401(k) Plan likely holds a significant portion of your family’s retirement savings. If you’re going through a divorce and need to divide this account correctly, you’ll need a QDRO that’s tailored to this specific plan.
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 Masters Building Solutions, 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.