Understanding QDROs and the Steward Health Care 401(k) Retirement Savings Plan
If you’re going through a divorce and one of you participated in the Steward Health Care 401(k) Retirement Savings Plan, a Qualified Domestic Relations Order (QDRO) is the legal tool that allows division of the account. But these orders aren’t one-size-fits-all. A proper QDRO needs to account for the unique details of the plan, as well as your specific divorce agreement. And because this particular plan is a 401(k), the rules can be technical—with factors like vesting schedules, Roth versus pre-tax contributions, and loan balances all coming into play.
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 drafting, preapproval (if needed), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that just prepare the document and hand it off. Let’s look at how that process works for the Steward Health Care 401(k) Retirement Savings Plan.
Plan-Specific Details for the Steward Health Care 401(k) Retirement Savings Plan
Before drafting a QDRO, you need to understand the plan’s structure. Here are the known details for the Steward Health Care 401(k) Retirement Savings Plan:
- Plan Name: Steward Health Care 401(k) Retirement Savings Plan
- Sponsor: Unknown sponsor
- Address: 20250530090813NAL0022007090001, 2024-01-01, 2024-12-31, 2010-11-06, 2811 MCKINNEY AVE
- EIN: Unknown (required for QDRO preparation)
- Plan Number: Unknown (also required for QDRO preparation)
- Industry: General Business
- Organization Type: Business Entity
- Plan Type: 401(k)
- Status: Active
Because key data like the EIN and plan number is missing from publicly available sources, your attorney (or QDRO professional) will need to request a copy of the Summary Plan Description (SPD) from the plan administrator. This often includes the address of the sponsor, procedures for submitting QDROs, and any preapproval process that might be required.
What Makes Dividing 401(k) Accounts Complex?
The Steward Health Care 401(k) Retirement Savings Plan is subject to technical rules that differ from pensions or other retirement benefits. Here are the key issues that must be addressed in your QDRO:
Employee and Employer Contributions
Many people think their 401(k) balance is 100% theirs—but employer contributions may not be fully vested, especially if separation occurred early in employment. While the employee’s own salary deferrals are always fully owned (vested), company matches might be forfeitable. That becomes an issue if you try to divide a portion of the total balance that hasn’t yet vested.
For example, if the account has $60,000—$40,000 in employee contributions and $20,000 in employer contributions—and only half the employer match is vested, then only $50,000 is actually subject to division. Your QDRO needs to clearly define whether the awarded amount includes or excludes unvested money.
Vesting Schedules and Forfeiture Clauses
Like many 401(k)s, the Steward Health Care 401(k) Retirement Savings Plan probably has a waiting period or tiered vesting schedule for employer contributions. We’ve seen plans with everything from 2-year cliff vesting to 6-year graded schedules. If you’re dividing an account with employer contributions, you must account for vesting at the “valuation date”—usually the date of divorce or separation.
QDROs can be drafted to award a percentage of the “vested account only”, or to specify a dollar amount from the vested portion. Sloppy QDRO language that ignores vesting may result in the Alternate Payee (usually the former spouse) receiving less than they expected—or nothing at all.
Outstanding Loans and Repayment Issues
If the participant borrowed against their Steward Health Care 401(k) Retirement Savings Plan, the current account balance might look deceptively low. Let’s say they have a $30,000 balance, but a $10,000 loan was taken out—the true net asset is $40,000, depending on how the plan administers loans.
Well-drafted QDROs should specify whether the loan is “included” or “excluded” from the balance being divided. If not, misunderstandings can arise: the Alternate Payee might be awarded 50% of what appears to be $30,000, but that doesn’t reflect their fair share.
And no—QDROs do not make the Alternate Payee responsible for loan repayment unless explicitly stated. Be clear in the order about loan treatment, or disputes will follow.
Roth vs. Traditional 401(k) Sub-Accounts
Many 401(k) plans, including the Steward Health Care 401(k) Retirement Savings Plan, distinguish between traditional (pre-tax) and Roth (after-tax) contributions. These are often tracked in separate sub-accounts. If the QDRO doesn’t explicitly state what portion of each sub-account is being awarded, major tax headaches can arise when funds are distributed.
The safest practice is to divide each type of contribution proportionally—e.g., 50% of the traditional account, and 50% of the Roth account. That way, the Alternate Payee ends up with the correct tax characterization when the funds are transferred or rolled over into their own retirement account.
The QDRO Process for This Plan
Step 1: Obtain the SPD and Plan Contact
Because this plan is sponsored by an “Unknown sponsor,” your first step is securing contact information for the plan administrator. The Summary Plan Description (SPD) should reveal submission requirements, EIN, plan number, and whether there’s a preapproval process.
Step 2: Draft a Precise QDRO
Next, the QDRO must be tailored to fit this specific plan’s features and your divorce terms. It needs to clearly address:
- Division method (percentage vs. flat dollar)
- Valuation date (date of divorce, separation, or another agreed-upon date)
- Loan inclusion/exclusion
- Roth vs. Traditional account treatment
- Unvested employer contributions, if relevant
Step 3: Submit for Approval and Court Entry
Some employers require preapproval before court filing; others don’t. Always check the specific requirements for the Steward Health Care 401(k) Retirement Savings Plan. Once the draft is approved, it needs to be submitted to the court and signed by a judge.
Step 4: Final Submission to Plan Administrator
Once the court signs the QDRO, submit the certified copy to the plan administrator for implementation. Processing typically takes 30–90 days, depending on the administrator’s backlog and the order’s clarity.
If you want to avoid delays, make sure your QDRO is thorough and error-free. Want to know why QDROs take so long sometimes? Here’s five key reasons.
Why Choose PeacockQDROs?
We’re not just form-fillers. At PeacockQDROs, we manage your QDRO from start to finish—drafting, preapproval, court filing, and submission. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. We also flag and avoid common QDRO mistakes that trip up other professionals.
Need help now? Visit our QDRO service page at https://www.peacockesq.com/qdros/ or contact us directly.
Final Thoughts
Dividing retirement assets like the Steward Health Care 401(k) Retirement Savings Plan isn’t as simple as splitting a checking account. Every element—from vesting schedules to sub-account types—must be handled with precision. That’s where we come in.
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 Steward Health Care 401(k) Retirement 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.