Introduction
Dividing retirement assets in divorce can be frustrating and complex—especially when the retirement plan involved is the Action for Children 403(b) Plan. This specific retirement plan, sponsored by an organization listed only as “Unknown sponsor,” has some unique characteristics you need to be aware of. Whether you’re dividing employee contributions, tackling employer matches, or figuring out how Roth dollars are allocated, a Qualified Domestic Relations Order (QDRO) is your legal vehicle for making it all happen. At PeacockQDROs, we’ve managed thousands of QDROs from start to finish, and we know what it takes to get this done the right way.
This article walks you through the QDRO process for the Action for Children 403(b) Plan, highlighting the details you’ll need to get it divided correctly in your divorce. We’ll talk about plan-specific issues like vesting, loans, and Roth vs. traditional dollars, so you can avoid common mistakes that can cost you time and money.
Plan-Specific Details for the Action for Children 403(b) Plan
Before preparing your QDRO, it’s important to understand the key data associated with the Action for Children 403(b) Plan. This plan has limited publicly available information, which means you’ll want to make a special effort in confirming details directly from the plan administrator or employer through subpoena or through your attorney, if necessary.
- Plan Name: Action for Children 403(b) Plan
- Sponsor: Unknown sponsor
- Address: 78 Jefferson Avenue
- Plan Type: 401(k) (though named “403(b),” plan data style suggests 401(k)-like contribution handling)
- Industry: General Business
- Organization Type: Business Entity
- EIN: Unknown (Required for QDRO drafting — will need to request through formal channels)
- Plan Number: Unknown (Also required — ask for Summary Plan Description during discovery)
- Status: Active
- Effective Dates Listed: 2009-01-01 through 2024-12-31
Understanding Qualified Domestic Relations Orders (QDROs)
A QDRO is the only legal way to divide a retirement plan like the Action for Children 403(b) Plan in a divorce without triggering taxes or penalties. Once the order is signed by the court and approved by the plan administrator, the alternate payee—often the ex-spouse—can receive their share without either party owing early-withdrawal penalties.
Employee and Employer Contributions
What’s Divisible?
Both employee and employer contributions in 401(k)-style plans can be divided if they were earned during the marriage. The QDRO should specify a formula, such as awarding 50% of marital contributions from the date of marriage to the date of separation. Be specific about what counts to avoid delays or disputes after it’s submitted.
Addressing Employer Contributions
Just because employer contributions exist doesn’t mean they’re fully yours—or your spouse’s. Many 401(k) plans include a vesting schedule. If a portion of the employer contribution is unvested at the time of divorce, it’s not subject to division. That needs to be clearly stated in the QDRO.
Ask the plan administrator for a vesting report. Then include language that specifies whether each party gets only vested assets or whether the alternate payee will receive their portion of any future vesting (if applicable).
Loan Balances and Repayment Obligations
Did the participant take out a loan from the Action for Children 403(b) Plan? That changes the math. Loans are not considered cash assets and are not available for division—unless both parties agree otherwise. Some QDROs exclude loan balances from the division and award percentages based on the net balance. Other times, a repayment responsibility can affect division if the loan was used for marital expenses. This must be clearly outlined in your QDRO to avoid dispute.
Traditional vs. Roth Account Balances
This plan may contain both traditional pre-tax dollars and after-tax Roth contributions. That’s an important detail because the tax treatment is different for distributions. If you’re the alternate payee, know what you’re receiving:
- Traditional: Withdrawals are taxed as ordinary income later
- Roth: Withdrawals are typically tax-free once rules are met, but early distribution rules still apply
Your QDRO should indicate whether the division will be proportionate across Roth and traditional sources—or if it will be allocated a specific way. Many administrators default to a pro-rata split unless directed otherwise.
QDRO Drafting Requirements for General Business Entities
Because the Action for Children 403(b) Plan is sponsored by a private Business Entity in the General Business industry, it won’t use the same rules as government or union-based plans. These types of plans usually follow strict ERISA guidelines, so administrators will often require the following in your QDRO:
- Exact Plan Name: Action for Children 403(b) Plan
- Plan Number and EIN (can often be found in the plan’s Summary Plan Description)
- Clear formula for division, such as 50% of contributions earned during marriage
- Instructions about whether loans are included
- Language addressing vesting schedules
- Tax treatment for Roth vs. traditional balances
Some administrators allow a pre-approval process before court filing. We highly recommend it—it can prevent costly rejections. Not sure if the plan allows it? We’ll find out for you. At PeacockQDROs, preapproval is all part of our full-service approach.
How PeacockQDROs Helps with Plans Like the Action for Children 403(b) Plan
Most law firms only prepare the QDRO document and hand it to you. But then you’re stuck filing it, getting it approved, and dealing with questions from the court clerk and the plan administrator. At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the order—we handle preapproval (if it’s available), filing with the court, follow-ups, and even submission to the administrator.
That’s what sets us apart. And it’s why we maintain near-perfect client reviews. To learn more about our process and how we can help, visit our QDRO information center.
Avoid These Common QDRO Mistakes
We see avoidable errors all the time with 401(k) plans like the Action for Children 403(b) Plan, especially when parties try drafting their own QDRO or use generic templates. Here are a few problems to watch for:
- Forgetting to account for loan balances
- Failing to address unvested employer contributions
- Leaving out tax treatment language for Roth/traditional accounts
- Using the wrong plan name
- Missing the plan number or EIN
Want more insights on mistakes to avoid? Visit our guide on common QDRO mistakes here.
How Long Will This Take?
Wondering how fast this process moves? Several factors can impact how long a QDRO takes, from how responsive the plan administrator is to whether your divorce judgment includes sufficient division terms. Read our article on the 5 factors that affect QDRO timelines.
Next Steps
Your divorce settlement is just the first step. To actually receive your portion of the Action for Children 403(b) Plan, you’ll need a QDRO that meets the plan’s requirements—and that starts with getting the right information and an experienced team.
At PeacockQDROs, we take care of every part of the process so you don’t have to worry about errors, delays, or missed benefits.
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 Action for Children 403(b) 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.