Understanding QDROs and the Teamhealth 401(k) Plan
When divorce involves retirement assets, things can quickly become complicated. The Teamhealth 401(k) Plan, sponsored by Ameriteam services, LLC, is an employee retirement plan that falls under ERISA and requires a qualified domestic relations order (QDRO) to legally divide benefits between spouses. If you’re divorcing and one of you participated in this specific 401(k) plan, it’s critical to get the QDRO process right. In this article, we’ll walk you through what to watch for, what to include, and how to avoid costly mistakes when dividing the Teamhealth 401(k) Plan during divorce.
Plan-Specific Details for the Teamhealth 401(k) Plan
This plan is a 401(k) retirement plan established for employees working under Ameriteam services, LLC—a business operating in the General Business sector as a Business Entity. Below are the relevant details we know about this plan:
- Plan Name: Teamhealth 401(k) Plan
- Sponsor: Ameriteam services, LLC
- Industry: General Business
- Organization Type: Business Entity
- Address: 265 BROOKVIEW CENTRE WAY
- Effective Date: 1999-10-01
- Plan Year: 2024-01-01 to 2024-12-31
- EIN and Plan Number: Required documentation, though currently unknown
- Status: Active
Even with some missing administrative data, this plan is active and subject to QDRO processing like any other qualified retirement plan.
What a QDRO Does—and Why You Need One
A qualified domestic relations order is a court order that allows a retirement plan to legally divide benefits between the participant (employee) and their former spouse (referred to as the alternate payee). Without a QDRO, the plan administrator cannot process any division, which means the alternate payee could be left without the benefits they were awarded in the divorce decree.
The Teamhealth 401(k) Plan will not distribute any portion of the account until a valid, court-certified, and plan-approved QDRO is in place.
Key Issues When Dividing the Teamhealth 401(k) Plan
1. Employee vs. Employer Contributions
401(k) plans typically include both employee contributions (which are always 100% vested) and employer contributions, which may be subject to a vesting schedule. The Teamhealth 401(k) Plan is no exception. When preparing the QDRO, these differences must be clearly addressed:
- Only the vested portion of employer contributions can be split.
- Unvested employer contributions may be forfeited if the employee leaves before full vesting is met.
The QDRO should specifically state whether the alternate payee receives a share only of the vested balance or whether a delayed valuation date is used after the final vesting date.
2. Loan Balances and Repayment
Many 401(k) participants borrow against their accounts. It’s essential to determine whether any active loans exist in the Teamhealth 401(k) Plan at the time of division. Here’s why that matters:
- If the QDRO divides total account value without accounting for outstanding loans, the alternate payee could receive more than their fair share.
- You can choose to divide the account net of loans (after the loan is deducted) or gross (before deduction).
The QDRO must make this distinction clear and consistent with your divorce settlement agreement to avoid confusion or rejection by the plan administrator.
3. Roth vs. Traditional 401(k) Accounts
The Teamhealth 401(k) Plan may have both pre-tax (traditional) and after-tax (Roth) contributions. Since these account types are taxed differently, you must handle them separately within the QDRO:
- Traditional 401(k): Tax-deferred; the alternate payee pays income tax when funds are withdrawn.
- Roth 401(k): Contributions are made after-tax; qualified withdrawals are tax-free.
The QDRO needs to specify whether the alternate payee is receiving proportional shares from both account types, or just one. If not addressed, the plan administrator may delay processing or misallocate funds.
Drafting Tips for a QDRO on the Teamhealth 401(k) Plan
Use Clear, Accurate Language
Ambiguity is one of the top reasons QDROs are rejected. Your language should be specific—for example, don’t say “half of the account” unless it’s clear what date that division applies to. Use “50% of the participant’s vested account balance as of January 1, 2024,” or another precise valuation date.
Address Plan-Specific Rules
Each plan has its own QDRO review procedures and formatting preferences. Ameriteam services, LLC may require review for preapproval before court filing. At PeacockQDROs, we know how to manage this step for you—avoiding unnecessary delays and rejections.
Consider Timing and Market Fluctuations
If the QDRO uses a valuation date far in the past, account values could change significantly due to market performance. Decide whether gains and losses will be included from the valuation date to the distribution date, and say so clearly in the order.
How PeacockQDROs Handles QDROs for This Plan
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.
Our team understands the importance of language that’s accurate for each plan—especially one with unique details like the Teamhealth 401(k) Plan. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
Avoiding Common QDRO Mistakes
Many QDROs are delayed—or outright denied—because of errors, omissions, or unclear terms. Learn what to avoid on our page on common QDRO mistakes. And if you need information on timing, check out our guide to the 5 factors that determine how long it takes to get a QDRO done.
Next Steps for Dividing the Teamhealth 401(k) Plan
Step 1: Gather Plan Info
- Request a full participant statement from the Teamhealth 401(k) Plan
- Look for loan amounts, Roth vs. traditional contributions, vesting schedules, and current value
Step 2: Decide on Division Terms
- Pick a clear valuation date
- Decide how to treat gains/losses, loans, and account types
Step 3: Hire a QDRO Professional
Don’t leave your retirement division to chance. Use a firm that knows how to draft and finish the QDRO the right way. Learn more about our full process on our QDRO overview.
Need Help with a QDRO? Contact Us
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 Teamhealth 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.