Introduction
Going through a divorce is tough enough on its own. When retirement assets like a 401(k) come into play, it can get even more complicated. If one of you has benefits under the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust, you’ll need a Qualified Domestic Relations Order (QDRO) to divide those benefits properly.
In this article, we’ll walk you through what a QDRO is, how it applies specifically to the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust, and the key things you need to consider when dividing a 401(k) in divorce. As QDRO attorneys at PeacockQDROs, we’ve handled thousands of these orders from start to finish, and we’re here to make sure you don’t miss anything critical along the way.
What Is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order, or QDRO, is a legal order required to divide certain retirement plans—including 401(k)s—in divorce or legal separation. A QDRO tells the retirement plan administrator how much of the plan should be given to the non-employee spouse, known as the “alternate payee.”
Without a QDRO, even if your divorce judgment says you’re entitled to part of a 401(k), the plan administrator legally can’t pay you your share.
Plan-Specific Details for the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust
Before drafting a QDRO, it’s important to understand the specifics of the plan being divided. Here is what we know about the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust:
- Plan Name: Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust
- Sponsor: Ultragenyx pharmaceutical Inc.. 401(k) plan and trust
- Plan Address: 60 Leveroni Court
- Plan Years Covered: 2024-01-01 to 2024-12-31 (with initial effective year of 2013-01-01)
- Organization Type: Corporation
- Industry: General Business
- Plan Status: Active
- Plan Number and EIN: Not currently disclosed, but required for QDRO drafting and submission
Because this is a 401(k) plan for a corporation in the general business sector, it likely includes both employee deferrals and employer contributions, possibly with a vesting schedule. These details must be carefully addressed in your QDRO.
Critical QDRO Factors for 401(k) Plans Like This One
Employee Contributions vs. Employer Contributions
Employee contributions in 401(k) plans are always 100% vested, meaning the employee fully owns them. However, employer contributions (like matching funds) may be subject to a vesting schedule. This means the employee only earns full rights to these amounts over time.
When dividing these assets, it’s essential to separate out what’s vested (dividable) vs. unvested (not divisible yet or ever). Your QDRO should clearly state whether it divides just the vested balance or includes any unvested amounts that may eventually vest.
Vesting Schedules and Forfeiture Clauses
If the employee spouse isn’t fully vested in employer contributions at the time of divorce, the QDRO must account for that. Some plans will allow language that permits the alternate payee to receive a portion of any additional vesting that occurs later; others will not.
Failing to clarify this point can cause benefits to be lost or misallocated. Also, if the employee spouse leaves Ultragenyx before becoming fully vested, unvested amounts may be forfeited, which impacts the alternate payee’s share.
Outstanding Loan Balances
It’s common for employees to borrow from their 401(k) plan. The Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust may allow loans, and the existence of a loan affects how the account is valued and divided.
If there’s an outstanding loan, your QDRO needs to answer key questions:
- Is the loan balance included in the division?
- Is the alternate payee’s share calculated before or after subtracting the loan?
- Who is responsible for repaying the loan?
These details should never be left vague. We’ve seen too many QDROs backfire because a loan wasn’t addressed properly.
Roth vs. Traditional 401(k) Accounts
If the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust has a Roth component (after-tax contributions), your QDRO must explicitly state how Roth and traditional (pre-tax) balances should be divided. Mixing both in one transfer can create serious tax confusion and distribution problems down the line.
The safest route is usually to divide each source separately—“X% of the Roth account” and “Y% of the pre-tax account”—to avoid misunderstandings during processing.
The QDRO Process for the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust
Step 1: Gathering the Right Information
Your QDRO attorney will need the plan’s formal name, plan administrator contact details, and the participant’s account statements. While the plan number and EIN are currently unknown, they are required for proper submission and must be obtained during the drafting process.
Step 2: Drafting the QDRO
Plan-specific language is important. Each 401(k) plan has special rules about formatting, terminology, and acceptable division methods. A solid QDRO for the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust needs to account for all division factors—vesting, loan balances, and account sources—to avoid rejection or misapplication.
Step 3: Preapproval (If Available)
Some plans offer preapproval services. If Ultragenyx pharmaceutical Inc.. 401(k) plan and trust provides this, we always take advantage. It’s a great way to avoid costly rejections after the court signs your QDRO.
Step 4: Court Filing
Once the QDRO is preapproved, it must be signed by the judge in the same court that issued your divorce decree. Timing matters—file as soon as possible to avoid delays.
Step 5: Submission to the Plan
After court approval, the signed QDRO gets submitted to the plan administrator. Processing times vary, but the cleaner and more precise the language, the faster it typically gets approved and implemented.
Common Mistakes to Avoid
We’ve fixed a lot of botched QDROs over the years. Some of the most common errors we see in cases involving plans like the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust include:
- Ignoring plan loans in the division language
- Failing to specify which account types (Roth vs. traditional) are being divided
- Omitting language around vesting schedules and earned vs. unearned employer contributions
- Submitting the QDRO before it’s been preapproved by the plan, if preapproval is required
We discuss these problems in greater detail in our Common QDRO Mistakes article.
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. See what goes into QDRO timelines in our article on the 5 Factors That Determine QDRO Timing.
Conclusion
If your divorce involves the Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust, you need to take special care when preparing your QDRO. Mistakes around vesting, loans, and Roth balances can cost you time and money—sometimes permanently.
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 Ultragenyx Pharmaceutical Inc.. 401(k) Plan and Trust, 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.