Introduction
If you’re going through a divorce and your spouse has a 401(k) through their employer, you may be entitled to a portion of that retirement account. When the plan in question is the Holman Enterprises Supplemental Retirement and Savings Plan, it’s important to understand how to properly divide it using a Qualified Domestic Relations Order (QDRO).
QDROs for 401(k) plans come with their own challenges—especially when the plan includes different account types like Roth and traditional, employer matching contributions with vesting rules, and loan balances. 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.
Let’s walk through what divorcing couples need to know about QDROs involving this specific plan.
Plan-Specific Details for the Holman Enterprises Supplemental Retirement and Savings Plan
- Plan Name: Holman Enterprises Supplemental Retirement and Savings Plan
- Sponsor: Holman automotive group, Inc.
- Address: 4001 Leadenhall Road
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Corporation
- Plan Status: Active
- Plan Number: Unknown (Required as part of QDRO submission—this must be obtained by request)
- EIN: Unknown (Also required for QDRO processing)
- Effective Date: Unknown
- Plan Year: Unknown to Unknown
- Participants: Unknown
- Assets: Unknown at this time, must be confirmed via statements or SPD
Because this plan is administered by a private employer in General Business, it follows corporate plan policies governed by ERISA (the federal law that governs private-sector retirement plans). These plans are generally more structured than public or union plans, but may vary in account design based on the plan document.
Why a QDRO is Required for the Holman Enterprises Supplemental Retirement and Savings Plan
You cannot divide a 401(k), including the Holman Enterprises Supplemental Retirement and Savings Plan, in divorce without a court order. Specifically, the QDRO allows a retirement account to be split between the participant and their former spouse (legally known as the “alternate payee”) without triggering early withdrawal penalties or taxes at the time of division.
Without a QDRO, the plan sponsor—Holman automotive group, Inc.—will not authorize any division of the retirement account.
Employee and Employer Contributions: What Can Be Divided
401(k) accounts include both employee contributions (what the worker sets aside from their paycheck) and employer contributions (matching or discretionary contributions from the company). Typically, all employee contributions are included in the QDRO division. However, employer match contributions may be subject to a vesting schedule, and only the vested portion is divisible.
Vesting Schedule Considerations
The Holman Enterprises Supplemental Retirement and Savings Plan likely has a vesting schedule for employer contributions. This means the employee earns ownership of the employer contributions over time. During QDRO drafting, it’s essential to:
- Confirm how much of the employer match is vested
- Exclude any unvested amounts from the marital division
- Ensure that forfeited amounts are not mistakenly included
If you’re the alternate payee, your QDRO should explicitly limit your share to vested amounts as of the cutoff date (typically the date of separation or date of judgment, depending on state law).
Handling Loan Balances Within the Holman Enterprises Supplemental Retirement and Savings Plan
Some participants may have taken out loans against their 401(k) accounts. These loan balances are important when dividing assets:
- If a participant had a loan at the time of division, it reduces the total account balance.
- The QDRO should clarify whether the alternate payee’s share is calculated before or after deducting the loan balance.
- If the alternate payee is not responsible for loan repayments (which is usually the case), this must be expressly stated.
A poorly drafted QDRO could result in inequitable division or delays during processing—especially if the plan administrator requires clarification about outstanding loans.
Roth vs. Traditional Accounts
Another complexity in 401(k) division is the presence of both traditional and Roth accounts within the same plan. The key differences:
- Traditional 401(k): Pre-tax contributions; taxes are paid upon withdrawal
- Roth 401(k): Post-tax contributions; qualified withdrawals are tax-free
When dividing an account with both traditional and Roth sources, the QDRO must:
- Specify the type and amount of each account type to be transferred
- Ensure separate tracking of Roth and traditional funds to preserve tax treatment
If the QDRO fails to properly identify the account types, the plan administrator may reject the document or erroneously transfer funds, creating tax issues down the road.
QDRO Language and Timing for This Plan
The Holman Enterprises Supplemental Retirement and Savings Plan is like many 401(k) plans in that it prefers or may require pre-approval from the plan administrator before entering the order in court. At PeacockQDROs, we handle all communications with the plan to ensure pre-approval and avoid rejections or delays.
The timing of your QDRO matters too. Dividing the account based on a date of separation, date of divorce, or another relevant cutoff date can significantly impact how much each party receives. Make sure your QDRO language includes:
- Clear cutoff date for division
- Statements regarding earnings/losses on the alternate payee’s share
- Provisions for how funds will be transferred (e.g., rollover to an IRA)
Common Mistakes to Avoid
QDROs for 401(k) plans—especially complex plans like the Holman Enterprises Supplemental Retirement and Savings Plan—require careful drafting. Some common pitfalls:
- Failing to account for loan balances
- Misidentifying Roth vs. traditional assets
- Trying to divide unvested employer contributions
- Incorrect or missing plan information (plan number, EIN, etc.)
We cover more of these in our guide to common QDRO mistakes—a helpful read if you want to avoid costly errors.
How Long Will a QDRO for This Plan Take?
The timeline for processing a QDRO depends on several factors—court efficiency, whether preapproval is needed, how cooperative the plan administrator is, and how complete your initial information is. Our firm has outlined the 5 key factors that determine how long a QDRO takes to get done. With PeacockQDROs, you’ll have a clear path from start to finish.
Why Choose PeacockQDROs for Your Division
At PeacockQDROs, we’re not just document preparers—we’re legal professionals who manage the entire QDRO process for you from start to finish. We’ve successfully handled thousands of retirement division orders across all types of plans, including complex 401(k)s like the Holman Enterprises Supplemental Retirement and Savings Plan. That includes drafting, optional pre-approval, court filing, follow-ups, and administrator submission.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. It’s our attention to detail and full-service approach that sets us apart.
Conclusion
Dividing a 401(k) like the Holman Enterprises Supplemental Retirement and Savings Plan requires more than just filling out a form. You need an accurate, plan-compliant, and court-approved QDRO that accounts for loan balances, vesting schedules, and separate taxable accounts.
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 Holman Enterprises Supplemental Retirement and 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.