Introduction
Dividing retirement assets in a divorce can be confusing—especially when one of those assets is a 401(k) plan like the Chick-fil-a, Inc. 401(k) Plan. If you or your former spouse has an account in this plan, a Qualified Domestic Relations Order (QDRO) is usually required to divide the benefits properly. Without a QDRO, the plan administrator won’t recognize the alternate spouse’s share, and costly tax penalties may result. This article will walk you through how to divide the Chick-fil-a, Inc. 401(k) Plan in a divorce using a QDRO, while addressing common pitfalls and plan-specific considerations.
What Is a QDRO?
A Qualified Domestic Relations Order (QDRO) is a court order that gives a spouse, former spouse, child, or other dependent the legal right to receive a portion of a retirement plan participant’s benefits. For 401(k) plans like the Chick-fil-a, Inc. 401(k) Plan, a QDRO is the only legal way to split the retirement account without triggering early withdrawal taxes or violating plan rules.
Plan-Specific Details for the Chick-fil-a, Inc. 401(k) Plan
Before drafting a QDRO, you need to understand the specific details of the retirement plan involved. Here’s what we know about the Chick-fil-a, Inc. 401(k) Plan, based on current records:
- Plan Name: Chick-fil-a, Inc. 401(k) Plan
- Sponsor: Chick-fil-a, Inc. 401(k) plan
- Organization Type: Corporation
- Industry: General Business
- Plan Status: Active
- Plan Address: 5200 Buffington Road
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Plan Number: Unknown
- EIN: Unknown
This is a 401(k) plan sponsored by a private corporation operating in the General Business industry. The absence of confirmed EIN and Plan Number means you or your attorney will need to obtain a copy of the plan’s Summary Plan Description (SPD) or contact the plan administrator directly when preparing your QDRO.
Dividing Employee and Employer Contributions
One key decision in QDRO drafting is whether to divide just the employee contributions or the full balance, which includes employer matches. Often, the agreement or court order will call for a percentage of the total value accrued during the marriage.
With the Chick-fil-a, Inc. 401(k) Plan, you may need to identify:
- The contribution history during the marriage
- Whether employer contributions were vested at the time of divorce
- Whether to divide account values as of a specific date or today’s balance
Because plans often match contributions and may include profit-sharing allocations, it’s critical to know what portion is subject to division. Be sure to confirm whether the plan administrator allows the division of employer contributions before full vesting.
Understanding Vesting Schedules and Forfeitures
401(k) plans typically have vesting schedules, which means that if the employee or participant hasn’t worked a certain number of years, they don’t get to keep all of the employer’s contributions upon termination.
If your spouse was not fully vested in the Chick-fil-a, Inc. 401(k) Plan at the time of divorce, any unvested amounts are generally not subject to division, unless they later become vested. A properly worded QDRO might include a clause allowing the alternate payee to receive a share of future vesting if that’s negotiated or ordered by the court.
What Happens If the Account Includes a 401(k) Loan?
It’s increasingly common for participants to have loans against their 401(k) accounts. If the Chick-fil-a, Inc. 401(k) Plan includes a loan balance, it complicates how the QDRO is written. The main options are:
- Include the loan as a marital liability and divide the net account value
- Divide the gross balance and assign full loan responsibility to the participant
Your attorney or QDRO provider should discuss whether the loan should be deducted from the marital portion you’ve agreed to divide. Incorrectly handling loans can delay approval and even lead to rejected orders.
Traditional vs. Roth Contributions in the Chick-fil-a, Inc. 401(k) Plan
Many 401(k) plans today include both pre-tax (traditional) and post-tax (Roth) contributions. These accounts are treated differently for tax purposes, and they need to be handled separately in your QDRO.
For example, the alternate payee may receive a portion of both types of accounts—but the Roth portion must retain its tax-free status if it is rolled into the right kind of Roth account. Mixing or mislabeling these can create major tax headaches.
QDRO Steps for the Chick-fil-a, Inc. 401(k) Plan
Here’s how the QDRO process typically works for the Chick-fil-a, Inc. 401(k) Plan:
- Gather your divorce decree and any related settlement language
- Contact the plan administrator or HR to request the QDRO procedures and sample language
- Have a professional like PeacockQDROs draft your QDRO to match your marital agreement and plan terms
- Submit a draft to the plan administrator for preapproval (if permitted)
- File the QDRO with the court and have it signed by the judge
- Send the court-certified copy to the plan administrator for final processing
Common Mistakes in Chick-fil-a, Inc. 401(k) Plan QDROs
Over the years, we’ve seen some recurring errors that delay or invalidate orders:
- Failing to specify a clear division date
- Ignoring loans or failing to specify how they are treated
- Omitting Roth vs. traditional account distinctions
- Not aligning the QDRO with the divorce decree or marital settlement
- Submitting the final QDRO before getting preapproval (if the plan requires it)
If you want to avoid these errors, check out our article on common QDRO mistakes.
Why Work With PeacockQDROs?
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. Even complex plans like the Chick-fil-a, Inc. 401(k) Plan can be handled efficiently with the right expertise.
Want to know how long your QDRO might take from start to finish? Review our article on 5 factors that impact QDRO timing.
Ready to learn more or start your order? Visit our QDRO resources or reach out today.
Final Thoughts
Dividing the Chick-fil-a, Inc. 401(k) Plan through a QDRO requires precision. Knowing the distinctions between traditional vs. Roth funds, how loans are handled, and how to deal with vesting schedules can make or break your outcome. Drafting the QDRO correctly the first time prevents delays, rejections, or worse—loss of your retirement rights.
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 Chick-fil-a, Inc. 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.