When divorce involves splitting retirement assets like a 401(k), outlining who gets what isn’t as simple as writing an agreement between the spouses. If one of the spouses has an account under the Aar Corp. Retirement Savings Plan, it will require a special court order called a QDRO—a Qualified Domestic Relations Order. Not every divorce attorney knows how to handle QDROs correctly, and mistakes can be expensive. That’s why it’s critical to understand the steps, rules, and options specific to this plan.
What Is a QDRO and Why Does It Matter in Divorce?
A QDRO is a legal order that allows retirement funds to be divided between spouses, ex-spouses, or dependents without triggering early withdrawal penalties or immediate tax consequences. For 401(k) plans like the Aar Corp. Retirement Savings Plan, the QDRO will direct the plan administrator to allocate a portion of the participant’s retirement balance to the alternate payee—usually the ex-spouse.
Plan-Specific Details for the Aar Corp. Retirement Savings Plan
- Plan Name: Aar Corp. Retirement Savings Plan
- Sponsor: Aar Corp. retirement savings plan
- Plan Address: 1100 NORTH WOOD DALE RD
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Business Entity
While some identifiers like the EIN and Plan Number are currently unknown, they will be required when submitting the QDRO. We help track these down as part of our full-service process at PeacockQDROs.
Dividing a 401(k) in Divorce: What Makes It Tricky
When dealing with a business entity retirement plan like the Aar Corp. Retirement Savings Plan, the QDRO must be tailored to the way the plan is structured. Because this is a 401(k), the QDRO will need to address specific features that can complicate division:
Employee and Employer Contributions
401(k) accounts accumulate through both employee contributions (funded from salaries) and employer contributions (such as matching funds). It’s important to identify which parts of the account are marital or community property. In many cases:
- Employee contributions during the marriage are divisible
- Employer contributions may be divisible based on vesting status
The key is figuring out the account balances and contributions made between the date of marriage and the date of separation or division. At PeacockQDROs, we often work with forensic accountants when needed to trace these amounts precisely.
Vesting Schedules: What Happens to Unvested Funds
Many 401(k) plans include employer contributions that only become “vested”—that is, owned by the employee—after the participant meets certain rules. For the Aar Corp. Retirement Savings Plan, it’s possible that unvested funds may be forfeited if the employee leaves before meeting a service requirement.
This means:
- You cannot award the non-employee spouse funds that are not vested at the time of division.
- The QDRO should sometimes include language stating that the alternate payee has no claim to forfeited, unvested amounts.
- If vesting occurs later (after the divorce), QDROs can be carefully written to award the alternate payee a portion of future-vested amounts, if agreed upon.
Outstanding Loan Balances
Another common issue in 401(k) QDROs is how to treat outstanding loan balances. If the participant has taken a loan from their account, that balance may reduce what’s currently available for division.
Some options for dealing with loans in QDRO drafting include:
- Excluding the loan balance from the marital estate (essentially assigning it solely to the participant)
- Including the loan and dividing the account balance as if it were still there (e.g., calculating the “hypothetical” balance before the loan and dividing that)
The plan administrator for the Aar Corp. Retirement Savings Plan may require one approach or the other. We always reach out during the pre-approval stage to make sure the loan language is accurate.
Traditional vs. Roth 401(k) Accounts
If the Aar Corp. Retirement Savings Plan allows both traditional (pre-tax) and Roth (after-tax) contributions, that split matters. Roth money has different tax consequences, so it’s important to assign Roth and traditional balances in the QDRO separately.
The alternate payee should also know that if they receive Roth 401(k) funds via a QDRO, the funds must go into a Roth IRA or other Roth-qualified account to preserve the tax-free growth benefit.
Drafting the Right QDRO for the Aar Corp. Retirement Savings Plan
Because this is a business-sponsored retirement plan with unknown plan identifiers at this stage, getting pre-approval on the QDRO is essential. At PeacockQDROs, we handle that for you to avoid surprises down the road.
Here’s what we do differently:
- We track down missing plan numbers and EINs—so your order doesn’t get delayed or rejected
- We follow specific plan rules—our team researches internal administrative procedures to avoid common QDRO mistakes
- We don’t leave you hanging—we draft, submit for preapproval, coordinate signatures, file in court, and handle communication with the administrator
Most QDRO preparation companies only provide a draft. We do the entire process. That’s how we’ve earned our reputation for doing it the right way.
QDRO Mistakes You’ll Want to Avoid
We’ve seen hundreds of QDRO-related problems over the years. To avoid the most common ones, review our resource: Common QDRO Mistakes. Here are a few examples:
- Using the wrong date for account valuation
- Failing to address loans or unvested funds
- Missing Roth designation
- Submitting incomplete paperwork to the plan administrator
All of these can delay retirement pay-outs or even result in lost benefits. That’s why it’s essential to work with a team that takes care of every detail.
How Long Does the QDRO Process Take?
Every plan is different, and the time it takes to get a QDRO finalized depends on several key elements: plan cooperation, whether preapproval is required, and how quickly the parties and court move.
To learn more, read our explainer: 5 Factors That Determine How Long QDROs Take.
Why Choose 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. Whether you’re just starting your divorce or already have a settlement agreement, we’re ready to help get your QDRO completed properly—and quickly.
Explore our QDRO resources or contact our QDRO team directly if you’re ready to get started.
Final Thoughts
The Aar Corp. Retirement Savings Plan, like many 401(k) plans in the general business industry, presents unique challenges when it comes to divorce. Whether you’re dealing with complex employer contributions, loans, or multiple account types, a properly drafted QDRO is the only way to protect both parties’ interests and avoid unnecessary tax consequences or delays.
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 Aar Corp. Retirement 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.