Introduction
When going through a divorce, dividing retirement assets like the Big Lots Savings Plan can be a critically important and legally complex process. If either you or your spouse has an account in this 401(k) plan sponsored by Big lots, Inc., you’ll likely need a Qualified Domestic Relations Order (QDRO) to divide the assets properly. As QDRO attorneys who have managed thousands of orders from start to finish, we’re here to walk you through what makes dividing the Big Lots Savings Plan unique and what you need to know to avoid costly mistakes.
Plan-Specific Details for the Big Lots Savings Plan
Here’s what you need to know about the Big Lots Savings Plan before starting the QDRO process:
- Plan Name: Big Lots Savings Plan
- Plan Sponsor: Big lots, Inc.
- Plan Address: 4900 E Dublin Granville Road
- Industry: General Business
- Organization Type: Corporation
- Plan Type: 401(k)
- Status: Active
- Effective Date: Unknown
- Plan Year: Unknown to Unknown
- Plan Number: Unknown (Typically required for the QDRO)
- EIN (Employer Identification Number): Unknown (Also needed for court filing and plan processing)
What Is a QDRO and Why It’s Required
A QDRO is a legal order that allows the division of a retirement plan between divorcing spouses without triggering early withdrawal penalties or tax consequences. For the Big Lots Savings Plan, which is a 401(k) account, this means allocating a portion of the participant’s vested balance to the non-employee spouse (referred to as the “alternate payee”).
Understanding the 401(k) Structure of the Big Lots Savings Plan
The Big Lots Savings Plan is a 401(k), which means participants may have multiple types of funds in their account: pre-tax (traditional), Roth (after-tax), and possibly employer matching or profit-sharing contributions. Each of these account components must be addressed correctly in the QDRO.
Employee and Employer Contributions
A typical QDRO for this plan will distinguish between employee deferral contributions and employer matching contributions. The employee’s portion is fully vested, but the employer’s may be subject to a vesting schedule. If the participant has not met those vesting requirements, some of the employer’s contributions could be forfeited.
Vesting Schedules and Forfeitures
401(k) plans like the Big Lots Savings Plan often use a graded or cliff vesting schedule for employer contributions. For example, an employee might vest 20% per year and be 100% vested after five years. If only three years of service have passed, only 60% of employer contributions are considered vested—and only those can be divided by QDRO. The rest will eventually be forfeited. Your QDRO should reflect only vested balances unless both parties agree to handle unvested balances differently.
Loan Balances
If the participant has an outstanding loan from the Big Lots Savings Plan, the QDRO should address this directly. Options include:
- Excluding the loan from the amount divided (resulting in a lower balance transferred to the alternate payee)
- Including the loan in the total marital account and having the alternate payee take a proportional share of the responsibility (not common but sometimes agreed upon)
Note that the plan administrator often reduces the transfer amount by the loan balance unless specified otherwise in the QDRO.
Roth vs. Traditional Balances
Another important consideration is the distinction between traditional (pre-tax) balances and Roth (after-tax) balances. A good QDRO will allocate each type proportionally, ensuring proper tax treatment. For example, if 80% of the account is pre-tax and 20% is in Roth funds, the alternate payee should receive distributions reflecting that same ratio—unless the parties agree otherwise.
How the QDRO Process Works for the Big Lots Savings Plan
While the Big Lots Savings Plan does not publish a public QDRO form, our experience with similar corporate 401(k) plans tells us the process typically follows these steps:
- Gather plan details: You’ll need the plan name, plan number, and the employer’s EIN.
- Draft the QDRO: The order must meet Internal Revenue Code requirements and plan-specific rules.
- Submit for preapproval (if applicable): Some plans review the QDRO before court filing.
- Obtain court signature: File the QDRO with the divorce court for approval.
- Send to plan administrator: Once signed, submit the order to the plan for final qualification and processing.
At PeacockQDROs, we don’t leave you guessing after we prepare the document. From drafting to submitting to the plan—plus following up to ensure processing—we handle everything.
What Sets PeacockQDROs Apart
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.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Dividing something as important and complex as a 401(k) should never be left up to guesswork.
Common Issues and Mistakes in QDROs for the Big Lots Savings Plan
From our experience, the most frequent problems we see with QDROs involving corporate 401(k) plans like the Big Lots Savings Plan are:
- Failing to specifically address loan balances
- Missing distinctions between Roth and traditional account components
- Overlooking vesting rules on employer contributions
- Using vague language that plan administrators reject
To avoid these issues—many of which can delay the process by months—read our article on Common QDRO Mistakes.
How Long Does the Process Take?
Every plan is different, and so is every case. The time it takes to complete a QDRO depends on several factors, including whether the plan requires preapproval and how fast courts process filings. Learn more about the five biggest timing factors here: How Long Does It Take to Get a QDRO?.
What You’ll Need to Get Started
To properly draft a QDRO for the Big Lots Savings Plan, we’ll typically need the following:
- Full legal names of both parties
- Date of marriage and date of separation
- Estimated balance of the 401(k) on the date of division
- A copy of your divorce judgment
- The participant’s Social Security number and contact information
- The plan’s EIN and plan number (we can often help track these down)
If you don’t have all this info yet, don’t worry. We can help guide you through collecting it and advise on the best way to structure your division.
Next Steps if You’re Facing a Divorce Involving the Big Lots Savings Plan
Whether you’re just starting your divorce or finalizing an agreement, it’s never too early—or too late—to get the QDRO right. Mistakes can lead to benefit delays, denied orders, or even tax penalties. That’s why it’s worth working with professionals who do much more than just draft documents.
For more information on dividing retirement assets through QDROs, check out our full range of services: QDRO Services.
State-Specific 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 Big Lots 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.