What Happens to the Regions Financial Corporation 401(k) Plan in Divorce?
Dividing retirement assets in a divorce can be one of the most complex and overlooked parts of the process. If you or your spouse has a 401(k) through the Regions Financial Corporation 401(k) Plan, it’s important to understand exactly how the division should work—and how a Qualified Domestic Relations Order (QDRO) is used to make that happen.
At PeacockQDROs, we’ve helped thousands of spouses successfully divide 401(k) assets in a divorce. This article will help you understand what to expect if you need to divide this specific plan, including how employer contributions, 401(k) loan balances, Roth subaccounts, and vesting schedules can all affect the QDRO.
Plan-Specific Details for the Regions Financial Corporation 401(k) Plan
Before discussing how to divide this plan, let’s look at the key known facts:
- Plan Name: Regions Financial Corporation 401(k) Plan
- Sponsor: Regions financial corporation 401(k) plan
- Address: 250 Riverchase Pkwy E, 5th Floor
- Plan Start Date: January 1, 1987
- Plan Year: Current: January 1, 2024 – December 31, 2024
- Plan Status: Active
- Industry: General Business
- Organization Type: Business Entity
- Plan Number & EIN: Unknown (this must be confirmed when submitting the QDRO)
Because the plan number and EIN are required for a QDRO submission, one of the first steps is requesting up-to-date plan documents from Regions financial corporation 401(k) plan or the plan administrator to confirm these details.
How QDROs Work for the Regions Financial Corporation 401(k) Plan
A QDRO is a court order that allows a retirement plan to pay a portion of a participant’s benefits to an alternate payee (usually the ex-spouse) without early withdrawal penalties or tax problems for the employee. For the Regions Financial Corporation 401(k) Plan, the QDRO must specifically follow the plan’s internal procedures and IRS regulations.
Key Things a QDRO Can Accomplish:
- Divide the participant’s 401(k) account between spouses
- Specify whether the alternate payee receives a lump sum or rollover
- Account for different account types (e.g., pre-tax and Roth)
- Split or avoid current 401(k) loan repayment obligations
Dividing Contributions: What Matters Most
Employee vs. Employer Contributions
For 401(k) plans like the Regions Financial Corporation 401(k) Plan, contributions typically come from both the employee and the employer. A QDRO can split both—but with one caveat: employer contributions are often tied to a vesting schedule.
That means if the employee hasn’t worked for the company long enough, a portion of the employer match might be non-vested and eventually forfeited. These non-vested funds cannot be paid to the alternate payee, so it’s essential your QDRO only assigns vested balances—or includes language that makes this distinction clear.
Be Sure to Request a Vested Benefit Statement
Before dividing this plan, ask for a current benefit statement showing:
- Vested vs. non-vested balances
- Roth vs. traditional account splits
- Any outstanding loan balances
This will help your QDRO attorney ensure the order avoids delays—and prevents improper division of unvested funds.
Handling Roth vs. Traditional Subaccounts
The Regions Financial Corporation 401(k) Plan may contain both traditional (pre-tax) and Roth (after-tax) balances. This matters because how those subaccounts are divided could affect how and when each party can access their share—and what taxes may apply.
Why This Matters:
- Traditional 401(k): Distributions are taxable later.
- Roth 401(k): Distributions are tax-free in retirement (if qualified).
Your QDRO should clearly state whether the alternate payee is receiving a proportional share of both subaccounts. Without proper drafting, the division could unintentionally assign only pre-tax funds, leading to tax surprises later on.
What About 401(k) Loans?
If the Regions Financial Corporation 401(k) Plan has an outstanding loan, it complicates the division process. The loan balance reduces the available amount in the account, so it must be addressed in the QDRO.
Two Options for Handling Loans:
- Exclude the loan and divide the remaining account only. This is the most common approach.
- Assign part of the loan to the alternate payee. Rare but possible with clear agreement and proper QDRO language.
If the QDRO doesn’t mention the loan, the plan administrator may reject it. Make sure your attorney or QDRO service knows how to address this issue from the start.
Timing Considerations: When Will the Alternate Payee Get Paid?
After a divorce, many people expect quick access to their share of a 401(k). But until a QDRO is submitted, accepted, and processed by the plan administrator, no payment is possible. PeacockQDROs has developed a proven process to make this as quick and efficient as possible.
Average Timeline Factors:
- Whether a preapproval process is required by the administrator
- Court availability for filing
- Accurate inclusion of plan details (like Plan Number and EIN)
For more detail, check out our article on QDRO timing basics.
Why Experience Matters With This Plan
PeacockQDROs has successfully processed thousands of QDROs across all 50 states. When you choose us, you’re choosing a team that handles every step: drafting, preapproval (when applicable), court filing, and submission to the plan administrator. We even follow up until it’s approved and processed—so you’re never left doing the hard part alone.
Our difference? We don’t just prepare and hand off paperwork. We see cases through to the finish line. That’s why we maintain near-perfect reviews and pride ourselves on getting QDROs right the first time.
Common Mistakes in 401(k) QDROs (And How to Avoid Them)
Want to avoid delays, rejections, or financial surprises when dividing the Regions Financial Corporation 401(k) Plan? Avoid these critical issues:
- Failing to distinguish between Roth and traditional subaccounts
- Ignoring the impact of a 401(k) loan
- Using outdated or missing plan numbers/EINs
- Assigning non-vested employer contributions
We’ve compiled a list of common QDRO errors that cause trouble. If your order is rejected once, fixing it takes more time and usually costs more. That’s why we recommend getting it right the first time.
Next Steps for Dividing the Regions Financial Corporation 401(k) Plan
If your spouse is a participant in this plan, or if you are the participant and need to divide the account, here’s what you should do:
- Get the plan’s Summary Plan Description (SPD) and participant statement.
- Confirm the Plan Number and EIN with the administrator.
- Ensure the QDRO appropriately addresses loans, vested status, Roth accounts, and timeline provisions.
- Choose a QDRO service that handles the full process—not just document prep.
You can reach out to the plan sponsor (Regions financial corporation 401(k) plan) at their listed address or via HR to request the required documentation. But fair warning: getting a response often takes time if you don’t know what to ask for. We take care of that part, too.
Contact Us for Help with Your QDRO
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 Regions Financial Corporation 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.