Dividing the Kraft Heinz Savings Plan in Divorce
When a couple divorces, dividing retirement assets is often one of the most challenging aspects of the financial settlement. For employees or former spouses connected to Kraft heinz foods company, the Kraft Heinz Savings Plan—a 401(k) retirement plan—can be subject to division through a Qualified Domestic Relations Order, or QDRO. But not all 401(k) plans are created equal, and understanding the specific rules and features of the Kraft Heinz Savings Plan is critical to ensuring your interests are protected.
What Is a QDRO and Why Do You Need One?
A QDRO is a court order that legally grants a former spouse (typically called the “Alternate Payee”) the right to receive a portion of a retirement benefit earned by the employee (the “Participant”) during the marriage. Without a QDRO, even if the divorce agreement says a spouse is entitled to part of the Kraft Heinz Savings Plan, the plan administrator cannot transfer those benefits.
That’s why getting a properly drafted and executed QDRO is a must. And when it comes to 401(k) plans like the Kraft Heinz Savings Plan, drafting the order requires careful attention to its unique features, including account types, contribution types, and loan balances.
Plan-Specific Details for the Kraft Heinz Savings Plan
Here’s what we know about the plan:
- Plan Name: Kraft Heinz Savings Plan
- Plan Sponsor: Kraft heinz foods company
- Address: 20250729094559NAL0003051297001
- Plan Year: 2024-01-01 to 2024-12-31
- Plan Status: Active
- Effective Date: 1974-06-12
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Business Entity
- EIN: Unknown (required for QDROs—your attorney will help you locate it)
- Plan Number: Unknown (also needed—often listed on plan documents)
Even with some unknown elements like the EIN and plan number, a knowledgeable QDRO professional can still obtain what’s needed to complete the order correctly.
Common Issues in Dividing the Kraft Heinz Savings Plan
Employee and Employer Contributions
A 401(k) plan like the Kraft Heinz Savings Plan includes both employee (participant) contributions and possibly employer matching or profit-sharing contributions from Kraft heinz foods company. When dividing the plan in a QDRO, both types of contributions may be included, but only up to the portion earned during the marriage.
The QDRO can specify a flat percentage (e.g., 50% of the marital portion) or use a specific formula. It’s important to calculate the “marital portion” accurately, typically the amount contributed from the date of marriage through the date of separation.
Vesting Schedules and Forfeitable Employer Amounts
Employer contributions in the plan may be subject to a vesting schedule. This means the Participant must work a set number of years before owning the full value. If the Participant has not yet met that schedule, unvested portions may be forfeitable—and they typically can’t be included in the QDRO assignment to the Alternate Payee.
A well-drafted QDRO will include terms to deal with unvested benefits. At PeacockQDROs, we always coordinate with the plan administrator to confirm vesting data and avoid mistakenly awarding benefits that are not yet available.
Loan Balances Against the Account
Another critical issue is existing loan balances. Many 401(k) plans, including the Kraft Heinz Savings Plan, allow participants to take loans from their account. But that loan reduces the balance available for division. Let’s say the Participant has a $100,000 balance with a $20,000 loan—only $80,000 may be available to divide, unless otherwise specified.
Some QDROs divide the pre-loan balance (as though the loan didn’t exist), while others divide the net balance. Deciding which method to use in your case should depend on your settlement goals and whether you want to share in the loan liability.
Roth vs. Traditional Accounts
The Kraft Heinz Savings Plan may allow both pre-tax (Traditional) and post-tax (Roth) contributions. These accounts are treated differently for tax purposes, which makes it smart to divide them separately in the QDRO.
For example, if the Participant has $60,000 in Traditional funds and $40,000 in Roth funds, and the QDRO awards 50% of the marital portion, the order might say the Alternate Payee gets $30,000 (Traditional) and $20,000 (Roth). This approach prevents confusion and ensures that tax status matches the original investment.
How a QDRO Affects Both Parties
Once the QDRO is approved and implemented, the Alternate Payee can transfer their share of the Kraft Heinz Savings Plan into their own retirement account—often a rollover IRA to avoid taxes (for Traditional funds), or a Roth IRA (for Roth funds). No early withdrawal penalties apply to QDRO-related distributions from 401(k) plans, even if the recipient is under age 59 ½.
For the Participant, the award to the former spouse is removed from their account once the plan processes the QDRO. It’s critical to confirm how soon this will happen and whether any investment decisions should be paused while the order is pending.
Steps to Complete a QDRO for the Kraft Heinz Savings Plan
At PeacockQDROs, we help clients finalize QDROs from beginning to end. Here’s how the process usually works:
- We gather all relevant plan documents, including account statements, loan data, and vesting schedules.
- We confirm the plan’s QDRO procedures and obtain a sample or model order if available.
- We draft the QDRO in compliance with Kraft Heinz Savings Plan rules and get it pre-approved if the plan allows.
- We file the order with the divorce court and secure the judge’s signature.
- We submit the signed QDRO to the plan administrator and monitor its implementation until completion.
That’s what makes us different. 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.
Mistakes to Avoid When Dealing with QDROs
Not all QDROs are created equal. Many errors happen when parties attempt to use generic templates or DIY kits without understanding the special rules of 401(k) plans. These mistakes could cost you thousands of dollars or leave your order unenforceable.
Here are the most common mistakes:
- Failing to address loan balances
- Not separating Roth and Traditional balances
- Assuming the former spouse can receive unvested funds
- Providing incomplete plan information (EIN and plan number are required)
For more on common QDRO errors, check out our guide to common QDRO mistakes.
Timeframe to Get a QDRO Done
People often ask: how long does it take to finish a QDRO for the Kraft Heinz Savings Plan? The answer varies based on the court, the plan’s administrative process, and whether pre-approval is required.
We break it down in our article, 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Need Help with Your Kraft Heinz Savings Plan 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 Kraft Heinz 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.