Understanding QDROs in Divorce
Dividing retirement assets during a divorce can get complicated—especially when one party has a 401(k) through their employer. If your spouse or you are a participant of the Tapestry, Inc. 401(k) Savings Plan, a Qualified Domestic Relations Order (QDRO) is required to legally assign a portion of those retirement funds to the non-employee spouse.
At PeacockQDROs, we’ve handled thousands of QDROs from start to finish, including every step from drafting and preapproval to court filing and submitting to the plan. Our hands-on process sets us apart from firms that only prepare a document and leave you to figure out the rest. In this article, we outline what divorcing couples need to know about dividing the Tapestry, Inc. 401(k) Savings Plan using a QDRO.
What is a QDRO?
A Qualified Domestic Relations Order is a court order that instructs a retirement plan administrator to distribute a portion of a participant’s retirement account to an alternate payee—usually a former spouse—as part of a divorce settlement. QDROs prevent taxes and early withdrawal penalties that typically apply to retirement plan distributions when done correctly.
Plan-Specific Details for the Tapestry, Inc. 401(k) Savings Plan
- Plan Name: Tapestry, Inc. 401(k) Savings Plan
- Sponsor: Tapestry, Inc. 401(k) savings plan
- Address: 10 HUDSON YARDS, 19TH FLOOR
- Effective Dates: 2001-07-01 to present
- Plan Year: 2024-01-01 to 2024-12-31
- EIN: Unknown (this can be obtained during the QDRO process)
- Plan Number: Unknown (also typically gathered during the QDRO process)
- Status: Active
- Organization Type: Corporation
- Industry: General Business
Key Factors When Dividing a 401(k)
401(k) plans offer both opportunities and challenges during divorce division. The Tapestry, Inc. 401(k) Savings Plan is designed for corporate employees, which usually means employer matches, vesting schedules, diverse account types, and sometimes outstanding loan balances. Below are the key areas to consider in your QDRO.
Employee vs. Employer Contributions
The participant’s contributions are almost always considered marital property subject to division if they occurred during the marriage. However, employer contributions can be tricky. The employer match may be partially or completely unvested depending on the vesting schedule, which determines the portion of those funds the employee is entitled to at any given time.
In a QDRO for the Tapestry, Inc. 401(k) Savings Plan, you must specify whether the alternate payee receives a share of just the vested contributions or includes future vesting on pre-divorce employer contributions. This distinction can significantly impact the total benefit awarded.
Vesting Schedules
Employer contributions to 401(k) plans often come with vesting schedules, meaning they become fully owned by the employee after meeting time-based milestones. If the divorce occurs before full vesting, only the vested portion is usually available for division. Your QDRO can also specify whether the alternate payee will receive any future vesting of employer contributions tied to pre-divorce employment.
Loan Balances and Repayments
If the plan participant has taken out a 401(k) loan, this directly reduces the total plan balance available for division. When preparing a QDRO for the Tapestry, Inc. 401(k) Savings Plan, it’s important to determine whether the account balance used for division will include or exclude the outstanding loan amount. This can shift the distribution value by thousands of dollars.
The QDRO should also clarify that the alternate payee is not responsible for repaying any portion of the loan, as the loan was taken by the participant using the account as collateral.
Roth vs. Traditional Contributions
Many modern 401(k) plans offer both traditional (pre-tax) and Roth (after-tax) contribution options. It matters how these are treated in a QDRO, because the tax implications are different. The QDRO should clearly state whether the alternate payee’s portion comes from traditional, Roth, or both types of sub-accounts. This ensures proper tax reporting and avoids IRS issues down the line.
QDRO Requirements for the Tapestry, Inc. 401(k) Savings Plan
The QDRO must comply with ERISA and the specific rules of the Tapestry, Inc. 401(k) savings plan. Because this plan is managed by a corporate sponsor in the general business industry, it’s likely administered by a third-party provider. That means your QDRO must follow both federal requirements and any formatting or pre-approval procedures dictated by the plan administrator.
Our office works directly with these plan administrators. We ensure documents are correct, complete, and pre-approved when required before filing with the court.
Common Issues to Avoid
- Using outdated or incorrect plan names
- Failing to address account types (Roth vs. traditional)
- Not specifying how to handle outstanding loans
- Ignoring vesting schedules in employer contributions
- Forgetting to obtain and include key identifiers like plan numbers or EINs
We cover these and other mistakes in our article on common QDRO mistakes.
How Long Does It Take?
The total QDRO timeline depends on how cooperative parties are and whether the plan has a preapproval process. Most QDROs take a few weeks to a few months from drafting to final approval. Read more about the five main factors that affect QDRO timing here.
Why Choose PeacockQDROs?
At PeacockQDROs, we’ve completed thousands of QDROs, including complex 401(k) plans like the Tapestry, Inc. 401(k) Savings Plan. We don’t stop at drafting—we take care of the preapproval (if required), court filing, and submission to the plan administrator. Then we follow up until it’s finalized. That’s what sets us apart.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way—for both attorneys and clients. Whether you’re a participant, alternate payee, or legal professional, we’re ready to help guide you through this process.
Check out more about our QDRO services here or contact us directly to get started.
Final Thoughts
A QDRO is not just a form—it’s a detailed legal document that requires precision, especially when dividing a 401(k) like the Tapestry, Inc. 401(k) Savings Plan. Whether you’re dealing with Roth contributions, unvested employer matches, or an outstanding loan, a poorly written QDRO can cost you thousands in missed benefits or tax penalties.
With PeacockQDROs, you’re not on your own. We handle it all, and we’ve seen all the pitfalls so you don’t have to.
Need Help with a 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 Tapestry, Inc. 401(k) 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.