Introduction
If you’re going through a divorce and either you or your spouse has retirement assets in the Lockheed Martin Corporation Salaried Savings Plan, a Qualified Domestic Relations Order (QDRO) is the legal tool you need to divide those funds. But not all QDROs are created equal. When it comes to 401(k) plans like this one, there are several plan-specific details you must get right for a successful division.
At PeacockQDROs, we’ve handled thousands of QDROs from start to finish—not just the drafting but also the court filing, plan submission, and final approval process. We’re here to make sure everything is done the right way, and this article will walk you through the most important best practices for dividing the Lockheed Martin Corporation Salaried Savings Plan in a divorce.
Plan-Specific Details for the Lockheed Martin Corporation Salaried Savings Plan
- Plan Name: Lockheed Martin Corporation Salaried Savings Plan
- Sponsor: Lockheed martin corporation salaried savings plan
- Address: 6801 Rockledge Drive, CCT-224
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
- Participants: Unknown
- Plan Number and EIN: Required for QDRO submission—your attorney or QDRO provider can assist in locating this if it’s not readily available.
- Industry: General Business
- Organization Type: Business Entity
Understanding Why QDROs Matter for 401(k) Plans
A QDRO ensures that retirement plan money is divided between divorcing spouses without triggering early withdrawal penalties or tax consequences. For the Lockheed Martin Corporation Salaried Savings Plan, this is critically important because it’s a 401(k)—not a pension. That means the assets are generally account-based, and the division is based on the actual balance at a given time, rather than a future benefit.
What Makes 401(k) QDROs Unique
Unlike defined benefit plans (pensions), 401(k)s involve complexities like:
- Participant and employer contributions that may have different rules
- Partial or full vesting schedules for employer contributions
- Loan balances that reduce the account value
- Roth vs. traditional tax treatment
All of these issues must be addressed in your QDRO to prevent delays, rejections, or unintended tax surprises.
Dividing Contributions: What the QDRO Needs to Cover
Employee Contributions
The easiest to divide, these are fully vested and represent money the employee put in through payroll deductions. Your QDRO should specify the date you’re valuing the account (often the divorce date or an alternative valuation date) and how the division should occur—e.g., 50% of the balance as of X date.
Employer Contributions and Vesting
Here’s where things get more technical. Employer contributions may not be fully vested based on years of service. Your QDRO should state whether the alternate payee (the non-employee spouse) is entitled only to the vested portion. If you assume 100% ownership without accounting for vesting, the plan administrator may reduce the alternate payee’s share to reflect only what was actually earned.
Unvested Amounts and Forfeitures
If your divorce order tries to divide unvested amounts, the QDRO must include language stating any unvested portion may be forfeited if the participant fails to become fully vested. This avoids confusion and delays during plan processing.
Loan Balances and QDRO Adjustments
If the participant has taken out a loan against their 401(k), that loan reduces the account’s current value but must still be addressed. Some QDROs divide the “net account balance” after the loan; others divide the gross balance and assign the loan debt proportionally. The key is to be intentional. A vague or silent QDRO could lead to serious disputes when money is disbursed.
Loan Repayment Options
- If the participant retains the loan and repayment responsibility, note that in the QDRO.
- If the alternate payee is assigned part of the loan, the QDRO must name who’s responsible for repayment and whether the debt offsets their award.
Handling Roth vs. Traditional Accounts
Many Lockheed Martin employees now contribute to Roth 401(k) sub-accounts in addition to traditional pre-tax funds. Your QDRO needs to distinguish between these sources, because the tax treatment is different:
- Traditional 401(k) funds are taxable when withdrawn
- Roth 401(k) funds may be tax-free when withdrawn, depending on IRS rules
Failure to identify the type of sub-accounts being divided or how to prorate Roth vs. traditional funds can lead to confusion or even rejection by the plan administrator.
QDRO Format Requirements for the Lockheed Martin Corporation Salaried Savings Plan
Each plan has unique formatting and submission requirements. For the Lockheed Martin Corporation Salaried Savings Plan, the QDRO should be submitted with complete participant details, including Social Security numbers, and must include the plan name exactly as it appears. The plan administrator may also require a preapproval process, meaning the draft is reviewed before court filing.
Why Choose PeacockQDROs
At PeacockQDROs, we do more than draft your QDRO. Once you hire us, we:
- Draft the order
- Submit the draft for plan administrator preapproval (if required)
- Coordinate filing with the court
- Send the signed order to the retirement plan for processing
- Follow up until the QDRO is fully implemented
That’s what sets us apart from firms that just prepare the document and leave the rest to you. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
Check out our helpful QDRO resources at https://www.peacockesq.com/qdros/ and learn more about common QDRO mistakes that can cost you time and money. If you’re wondering how long a QDRO could take, read about the 5 factors that impact timing.
Final Checklist for Dividing the Lockheed Martin Corporation Salaried Savings Plan
- Use the exact plan name: Lockheed Martin Corporation Salaried Savings Plan
- Confirm and include plan number and EIN if available
- Clearly define whether division is based on account value, flat dollar amount, or formula
- Clarify tax treatment (Roth vs. traditional)
- Address loan obligations and repayment allocations
- Mention any vesting-related contingencies
- Include survivor benefit language, if applicable
- Ensure the order meets ERISA and plan-specific rules
Conclusion and 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 Lockheed Martin Corporation Salaried Savings 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.