Introduction
Dividing retirement assets in divorce is often one of the most overlooked – yet financially impactful – parts of the process. If your spouse has a retirement plan through Torrid LLC, you may be entitled to a share of the Torrid 401(k) Plan. But there’s a specific legal order required to make this division possible: a Qualified Domestic Relations Order, or QDRO.
In this article, we explain what a QDRO is, how it works specifically with the Torrid 401(k) Plan, and what you need to watch for when dividing this type of retirement benefit in a divorce. We also outline some key issues, including how account loans, employer contributions, and Roth 401(k) funds should be handled.
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.
What is a QDRO?
A Qualified Domestic Relations Order (QDRO) is a legal order, approved by a court and the retirement plan, that allows a retirement account to be divided between the account holder and another person – typically a former spouse. Without a QDRO, plan administrators cannot legally divide or disburse funds from a qualified plan like a 401(k) as part of divorce property division.
In the case of the Torrid 401(k) Plan, the QDRO will often instruct Torrid LLC to transfer a certain percentage (or dollar amount) of the plan participant’s account to the alternate payee (the ex-spouse), and it must include very specific language to conform with the plan’s requirements.
Plan-Specific Details for the Torrid 401(k) Plan
To draft an enforceable QDRO, you need to know key plan-related information. Here’s what we know about the Torrid 401(k) Plan:
- Plan Name: Torrid 401(k) Plan
- Sponsor: Torrid LLC
- Address: 18501 E. SAN JOSE AVENUE
- Organization Type: Business Entity
- Industry: General Business
- Status: Active
- Plan Year: Unknown to Unknown
- Participants: Unknown
- Effective Date: Unknown
- EIN: Unknown – this will be required at time of QDRO submission
- Plan Number: Unknown – another mandatory detail when finalizing the order
When preparing a QDRO, we make sure these technical details are reviewed and confirmed for accuracy – which helps avoid delays during the approval process.
Common QDRO Considerations for the Torrid 401(k) Plan
1. Employee and Employer Contributions
401(k) plans typically include both employee contributions and employer contributions. However, only vested employer contributions are divided under a QDRO. The Torrid 401(k) Plan likely has a vesting schedule for employer matching or profit-sharing contributions.
If the participant hasn’t worked for Torrid LLC long enough to be fully vested, any unvested balances may be forfeited unless future service is rendered. This means the alternate payee could end up receiving less than initially expected if the QDRO doesn’t account for this.
2. Vesting Requirements and Forfeitures
The Torrid 401(k) Plan probably uses a graded or cliff vesting schedule, which you must account for when drafting the QDRO. Many plans restrict the division only to vested funds, especially for employer contributions. At PeacockQDROs, we always contact the plan administrator to verify these specifics, so you don’t end up with a rejected or ambiguous order.
3. Loan Balances
401(k) loan balances are a frequent point of confusion. If the participant has an outstanding loan within the Torrid 401(k) Plan, that loan reduces the plan balance even though it isn’t visible as cash. In most QDROs, the plan will not assign a portion of the loan to the alternate payee unless clearly stated by the order.
Make sure your QDRO addresses:
- Whether to divide the loan burden
- Whether to calculate the alternate payee’s share before or after subtracting the loan
We help you make these decisions up front, so there’s no confusion later when the funds are transferred.
4. Roth vs. Traditional Accounts
The Torrid 401(k) Plan may include both traditional (pre-tax) and Roth (after-tax) contributions. These accounts are treated very differently at tax time. When the QDRO is processed, the alternate payee may receive funds divided into two separate accounts if both traditional and Roth balances exist.
It’s essential to specify whether the QDRO is dividing total 401(k) assets proportionally or separating them by account type. Not doing so can delay processing and lead to tax complications for both parties.
Drafting and Filing a QDRO for the Torrid 401(k) Plan
Step 1: Get Plan Guidelines
Although this plan is sponsored by Torrid LLC, the actual plan administration may be handled by a separate financial services provider, such as Fidelity or Vanguard. We start by getting the plan’s QDRO procedures, forms, and requirements.
Step 2: Draft the Order
This is not a generic document – a successful QDRO must be tailor-made for the Torrid 401(k) Plan. It must include:
- The correct Plan Name (“Torrid 401(k) Plan”)
- Employer’s correct address (“18501 E. SAN JOSE AVENUE”)
- Participant’s details
- Allocation method (percentage or dollar amount)
- Roth/traditional breakdowns
Step 3: Preapproval (If Offered)
Some plans offer a preapproval process to make sure the draft QDRO is acceptable before going to court. This step is optional but highly recommended. It minimizes court re-filings and prevents rejections later on. At PeacockQDROs, we always request preapproval where it’s available.
Step 4: Court Filing and Signed Judgment
The court must formally sign the QDRO before the plan can act. We make sure your QDRO lines up with your divorce decree and local state rules for family court filings.
Step 5: Submission and Follow-Up
Once signed, the order must be sent to the Torrid 401(k) Plan administrator. Most delays happen here – following up is essential. We don’t leave this to chance. Our team tracks the QDRO until the account split is fully processed.
Risks of Incorrect or Incomplete QDROs
Getting the QDRO wrong can mean:
- Delays in distribution
- Rejection by the plan administrator
- Unintended tax consequences
- Loss of benefits if participant remarries or retires
Many people try to use generic QDRO templates or rely on their divorce attorneys to “figure it out.” That’s a mistake. Learn more about the most common QDRO mistakes here.
How Long Does It Take to Get a QDRO for the Torrid 401(k) Plan?
It depends. Timelines are affected by court backlogs, plan approval procedures, and how thoroughly the QDRO was prepared. See the five biggest factors influencing QDRO timing here.
Trust the Experts
At PeacockQDROs, we maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. We handle every step—drafting, filing, plan approval, and confirmation—so you can rest easy knowing your benefits are protected.
Visit our full QDRO service overview here, or contact us directly with your questions.
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 Torrid 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.