If you or your spouse participated in the True Terpenes 401(k) Plan through Bulk natural LLC and are now going through a divorce, you may be wondering how to divide this retirement account. The key tool for dividing 401(k) plans like this one in divorce is called a Qualified Domestic Relations Order—commonly referred to as a QDRO. In this article, we’ll walk you through how this process works, what makes it complicated, and what to keep in mind when dealing with the unique elements of the True Terpenes 401(k) Plan.
What Is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order (QDRO) is a legal order that allows a retirement account like a 401(k) to be divided between divorcing spouses. Without a QDRO, the plan administrator cannot legally pay retirement account funds to anyone other than the plan participant. That means even if your divorce judgment awards part of the 401(k) to the non-employee spouse (called the “alternate payee”), the money won’t be distributed unless a valid QDRO is submitted and approved.
Because each retirement plan has its own rules and formats, not all QDROs are created equal. The True Terpenes 401(k) Plan has its own administrative procedures and account structure that must be followed for the QDRO to be accepted.
Plan-Specific Details for the True Terpenes 401(k) Plan
Here’s what we know about the retirement plan involved:
- Plan Name: True Terpenes 401(k) Plan
- Sponsor: Bulk natural LLC
- Address: 20250210183556NAL0032508624001, 2024-01-01
- Employer ID Number (EIN): Unknown (must be obtained before filing)
- Plan Number: Unknown (must be obtained before filing)
- Organization Type: Business Entity
- Industry: General Business
- Status: Active
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Assets: Unknown
Even though some of the administrative details are currently unknown, they can usually be obtained through a subpoena, document request, or plan administrator inquiry during the divorce process. These details are required when drafting and filing the QDRO.
Key Issues to Watch Out for in 401(k) QDROs
Employee and Employer Contributions
The True Terpenes 401(k) Plan likely includes both employee (participant) contributions and employer contributions made by Bulk natural LLC. One of the essential issues in drafting a QDRO is whether the alternate payee is entitled to just the employee contributions, or if employer contributions will also be divided.
Remember, employer contributions often come with vesting schedules. That means some of the funds may not fully belong to the employee if they haven’t met certain service or time requirements. A QDRO can only divide what is vested
Therefore, if your divorce covers a period in which the employer contributions hadn’t fully vested, the alternate payee might receive less than expected. It’s important to contact the plan administrator or work with a QDRO professional to confirm the current vesting percentage.
Vesting Schedules and Forfeitures
If your spouse hasn’t been employed at Bulk natural LLC long enough, a portion of the employer contributions may still be unvested. You can still include language in your QDRO stating that the alternate payee is entitled to a share of any future vesting, if the employee remains employed. However, if the participant leaves the job and forfeits those unvested funds, the alternate payee may not receive them at all.
Carefully reviewing the plan’s vesting schedule is crucial in setting accurate expectations during divorce negotiations and QDRO drafting.
Roth vs. Traditional Account Balances
Another issue to consider is whether the plan includes both traditional (pre-tax) and Roth (after-tax) 401(k) contributions. These are treated very differently for tax purposes. The QDRO must specify how each type of account is divided, particularly since Roth 401(k) balances may have different withdrawal rules and implications for the alternate payee.
It’s strongly recommended that your QDRO be written to divide each account type separately so that the tax reporting responsibility is clear. Some plans allow you to split just the traditional portion or just the Roth portion—or both, depending on your goals.
Loan Balances
Did the employee spouse take out a loan from the True Terpenes 401(k) Plan? If so, that loan reduces the available account balance. Here’s how this comes into play:
- If the QDRO splits the account without adjusting for the loan, the alternate payee’s share may be less than expected.
- You can choose whether the loan is factored into the calculation of marital assets during divorce negotiations, or whether it should be treated as a separate debt on the participant’s side.
The plan administrator needs to know exactly how to handle the loan from both a legal and practical standpoint. If the loan was taken during the marriage, it may be considered a joint asset reduction. Again, clarity in drafting is key.
How the QDRO Process Works for This Business Entity Plan
The True Terpenes 401(k) Plan is a retirement benefit sponsored by Bulk natural LLC, a General Business company. This plan is governed by ERISA rules, meaning the QDRO must be approved both by the family court and by the plan administrator.
Here’s the basic process:
- Obtain plan documents and contact the plan administrator to request their QDRO guidelines.
- Gather full information, including participant account balances, loan balances, vesting statements, and any Roth/traditional allocations.
- Draft the QDRO in compliance with both the divorce decree and plan rules.
- Submit the draft (in some cases) to the plan administrator for preapproval, if the plan allows it.
- File the approved or final QDRO with the appropriate court.
- Obtain a certified court order and send it to the plan administrator for implementation.
Common Mistakes in 401(k) QDROs
We see the same preventable errors over and over again:
- Failure to state whether division is pre- or post-loan balance
- No mention of Roth balances vs. traditional
- Incorrect assumption about vested vs. unvested benefits
- Lack of clarity on whether gains/losses apply after the division date
We’ve compiled a detailed guide of mistakes to avoid, which you can read here: Common QDRO Mistakes.
How PeacockQDROs Can Help
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—especially with plans like the True Terpenes 401(k) Plan, where attention to Roth accounts, loans, and vesting is critical.
If you want to learn more about the full process, check out our guide: How Long Does It Take to Get a QDRO Done?
Final Thoughts
If you’re dividing the True Terpenes 401(k) Plan, take the time to get it right. The structure of 401(k) accounts, especially with employer contributions, loan balances, and mixed account types, can lead to costly surprises without a carefully prepared order. Don’t assume your divorce judgment alone will get you paid.
Work with professionals who understand the complexities of business-sponsored 401(k) plans like the one offered by Bulk natural LLC. A properly handled QDRO isn’t just a technical form—it’s the key to protecting your rights in divorce.
State-Specific 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 True Terpenes 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.