Understanding the Basics of QDROs
If you’re going through a divorce and either you or your spouse has a retirement plan like the Aflac Incorporated 401(k) Savings and Profit Sharing Plan, you’ll likely need a Qualified Domestic Relations Order (QDRO) to divide those retirement benefits. A QDRO is a legal order that allows a retirement plan administrator to transfer a portion of the participant’s retirement account to an ex-spouse without triggering early withdrawal penalties or tax consequences for the participant.
But 401(k) plans—especially ones like the Aflac Incorporated 401(k) Savings and Profit Sharing Plan—have unique rules and structures that must be carefully considered in the QDRO. This article outlines exactly what divorcing couples need to know about dividing this particular plan and how PeacockQDROs helps ensure the entire process is done properly.
Plan-Specific Details for the Aflac Incorporated 401(k) Savings and Profit Sharing Plan
- Plan Name: Aflac Incorporated 401(k) Savings and Profit Sharing Plan
- Sponsor: Aflac incorporated 401(k) savings and profit sharing plan
- Address: 1932 Wynnton Road
- Plan Type: 401(k)
- Organization Type: Corporation
- Industry: General Business
- EIN: Unknown (must be confirmed during drafting)
- Plan Number: Unknown (must be requested from the plan administrator)
- Status: Active
- Effective Date: Unknown
- Plan Year: Unknown to Unknown
- Participant Count: Unknown
- Assets: Unknown
Because the EIN and Plan Number are unknown, those must be confirmed with the plan administrator during QDRO processing. This is a common step for many corporate plans.
Special Considerations When Dividing a 401(k) in Divorce
401(k) plans like the Aflac Incorporated 401(k) Savings and Profit Sharing Plan involve more than just a balance split. Several key issues can affect how the account is divided and how the QDRO should be written.
1. Employee vs. Employer Contributions
Contributions made by the employee (salary deferrals) are generally 100% owned by the participant. However, employer matching or profit-sharing contributions may be subject to a vesting schedule. This means some of these funds may not yet belong to the participant—and therefore can’t be divided in the QDRO.
If you or your spouse is entitled to a percentage of the account, we’ll break it down by type:
- Employee deferrals (e.g., traditional or Roth contributions)
- Employer match or profit sharing (only the vested portion)
2. Vesting Schedules and Their Impact
The employer contributions in this plan are likely subject to a vesting schedule. If the participant hasn’t been with Aflac incorporated 401(k) savings and profit sharing plan long enough, they might not be fully vested. At PeacockQDROs, we ensure the QDRO clearly states whether unvested amounts are included and what happens if the participant becomes vested later.
This is essential protection for both parties—especially if the alternate payee is relying on a specific amount.
3. Existing Loans Against the 401(k)
It’s not uncommon for employees to take out loans against their 401(k). But what happens when there’s an outstanding loan balance during a divorce?
- If the QDRO is based on the total account balance before deducting the loan, the alternate payee may receive more than their share of liquid assets.
- If it’s based on the net balance (after loan), they might receive less than expected.
The QDRO must state how loans are treated—whether they’re factored in or ignored—to avoid disputes and distribution delays. PeacockQDROs addresses this in our standard practices.
4. Roth vs. Traditional 401(k) Funds
The Aflac Incorporated 401(k) Savings and Profit Sharing Plan may include both traditional (pre-tax) and Roth (after-tax) contributions. These accounts have significantly different tax implications for the alternate payee.
A proper QDRO should specify which account types are being divided and how. That could include:
- Awarding a percentage of just the traditional balance
- Splitting only the Roth portion
- Pro-rata division across both types
If not properly addressed, this can create confusion—or worse, major tax surprises later.
The QDRO Process for This Plan
Dividing a 401(k) from a corporate general business like Aflac incorporated 401(k) savings and profit sharing plan requires precision. Here’s how PeacockQDROs handles it:
Step 1: Confirm Plan Details
We obtain and review the official Summary Plan Description (SPD) and contact the plan administrator to identify the plan number, EIN, and any submission requirements. Since these are not publicly listed here, it’s critical we get these early.
Step 2: Draft a Compliant Order
We prepare a draft order customized for the Aflac Incorporated 401(k) Savings and Profit Sharing Plan’s specific provisions—including contribution types, loan treatment, and vesting stipulations.
Step 3: Submit for Preapproval (If Allowed)
Some plans offer preapproval, where the plan administrator confirms the order is acceptable before it’s filed with the court. If available, PeacockQDROs always takes advantage of this step to avoid rejection delays.
Step 4: File with the Court
Once preapproved (or drafted if no preapproval is needed), we file the QDRO with the domestic relations court. This makes it legally binding.
Step 5: Submit the Final Order to the Plan
Finally, we send the certified court-approved QDRO to the Aflac Incorporated 401(k) Savings and Profit Sharing Plan’s administrator for implementation.
At PeacockQDROs, we handle each of these steps so you don’t get stuck figuring it out on your own. Many lawyers only draft the QDRO and leave you responsible for court filing and plan submission—but we finish what we start.
Avoiding Costly Mistakes in QDROs
With a 401(k) plan like Aflac’s, common mistakes can be costly—financially and emotionally. These include:
- Failing to properly address vested vs. unvested contributions
- Ignoring Roth/traditional distinctions
- Excluding loan balances, leading to lopsided transfers
- Submitting orders missing critical info like the EIN or Plan Number
We frequently correct these problems after reviewing rejected or poorly written QDROs prepared elsewhere. Browse our list of common QDRO mistakes to see what to avoid.
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. And we know how to get QDROs done efficiently. See our insights on how long QDROs take.
Final Thoughts
If your marital assets include the Aflac Incorporated 401(k) Savings and Profit Sharing Plan, don’t leave the QDRO to chance. These plans have unique administrative rules and multiple account components that must be addressed properly to protect both spouses’ rights.
Whether you’re the plan participant or the alternate payee, having a properly prepared QDRO can make the difference between receiving your share without delays—or facing administrative denials, tax issues, or years of frustration.
Let us help you get it done right the first time.
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 Aflac Incorporated 401(k) Savings and Profit Sharing 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.