Understanding QDROs and the Butler Machinery Company Retirement Plan
Dividing retirement assets during divorce can be complicated—especially when plans include employer contributions, vesting schedules, and loan provisions. If your or your spouse’s retirement account includes the Butler Machinery Company Retirement Plan, it’s critical to understand how a Qualified Domestic Relations Order (QDRO) works with this specific 401(k) retirement plan. At PeacockQDROs, we’ve processed thousands of QDROs from start to finish, ensuring each one meets every requirement and avoids costly mistakes.
This guide explains what you need to know about dividing the Butler Machinery Company Retirement Plan through a QDRO—including the unique challenges and considerations tied to this 401(k) plan type.
Plan-Specific Details for the Butler Machinery Company Retirement Plan
Here is the key data we know about the Butler Machinery Company Retirement Plan, which is critical when drafting and implementing your QDRO:
- Plan Name: Butler Machinery Company Retirement Plan
- Plan Sponsor: Butler machinery company retirement plan
- Address: 3401 33RD ST. S
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Business Entity
- Plan Year: Unknown to Unknown
- Status: Active
- Effective Date: Unknown
- Participants: Unknown
- Assets: Unknown
- EIN: Unknown
- Plan Number: Unknown
Although the exact EIN and plan number are not publicly listed, these items must be obtained before the QDRO is submitted. They are required by administrators to properly process the order. An experienced QDRO professional can help secure this information if you don’t already have it.
Key Elements of the Butler Machinery Company Retirement Plan That Impact QDROs
Since this plan is a 401(k), there are a few specific technical aspects you’ll need to keep in mind during your divorce settlement and QDRO process:
Employee and Employer Contributions
401(k) plans like the Butler Machinery Company Retirement Plan typically include employee pre-tax or Roth contributions and employer matching or profit-sharing contributions. In a divorce, both types can be divided if they were earned during the marriage.
The QDRO should specify whether the alternate payee (the spouse receiving a share) is getting:
- A flat dollar amount
- A percentage of the account balance as of a specific date (often the date of separation or divorce)
- A proportional share of all account types, including Roth and traditional balances
Vesting and Forfeited Amounts
Employer contributions typically follow a vesting schedule—meaning the employee must work for the employer for a certain number of years before those funds fully belong to them. If the participant is not 100% vested at the time of divorce, any unvested employer contributions could eventually be forfeited.
Your QDRO should take this into account. For example, the order might specify that the alternate payee receives half of the vested balance as of the division date—not the full balance, which might overstate what is legally transferable.
401(k) Loans and QDROs
It’s not uncommon for employees to have taken out loans against their 401(k) accounts. These loans show up as a liability in the account and directly impact the available balance for division.
There are two common ways to account for loans in the QDRO:
- Include the loan in the division: The balance is included in the value considered for equitable distribution, even if the loan proceeds were already used.
- Exclude the loan: Only the net account value (total assets minus loan) is divided between the spouses.
This is largely a legal and strategic decision that should be decided during your divorce settlement—not when drafting the QDRO. Your agreement should spell out how 401(k) loans are to be handled.
Traditional vs. Roth 401(k) Accounts
The Butler Machinery Company Retirement Plan may include both traditional and Roth 401(k) accounts. These differ in how contributions are taxed:
- Traditional 401(k): Pre-tax contributions and taxable upon distribution
- Roth 401(k): After-tax contributions with generally tax-free distributions
The QDRO should clearly state whether the alternate payee is receiving a share of each type of account. Mixing them up can lead to IRS issues and unintended tax consequences. When done correctly, the plan administrator will maintain proper tax account segregation after the transfer.
Drafting the QDRO: Plan-Specific Insights
Because this plan is sponsored by a business entity in the general business sector, it typically uses a large third-party administrator to handle QDROs. These administrators can have strict formatting and terminology requirements. Ensuring your QDRO meets those standards is essential to avoid costly delays or rejections.
From our experience with hundreds of 401(k) QDROs, it’s important to correctly identify:
- Plan name: Butler Machinery Company Retirement Plan
- Plan sponsor: Butler machinery company retirement plan
- Correct plan type: 401(k)
- Account types: Roth vs traditional
- Loan treatment: included or excluded from division
- Vesting status at time of divorce
Why PeacockQDROs Is the Right Choice for Your QDRO
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:
- Document drafting
- Preapproval (when the plan allows or requires it)
- Court filing and processing
- Submission to the plan administrator
- Ongoing follow-up until approval
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—with close attention to every detail, especially with complex 401(k) plans like the Butler Machinery Company Retirement Plan.
Timing and Pitfalls to Avoid
Timing is a big deal when dividing 401(k) assets. Many spouses assume the QDRO is automatic after divorce—it’s not. Delays in filing the QDRO can lead to complications like reduced account balances or administrative issues if the participant retires or changes employers.
Want to know why some QDROs take weeks and others take months? Check out our post on factors affecting QDRO processing time.
Also, avoid the typical mistakes many couples make. Review what to avoid on our guide to common QDRO mistakes.
Let’s Make Sure It’s Done Right
The sooner you address the QDRO—ideally during your divorce negotiations—the more precise and fair the division will be. Don’t wait until your divorce is final to get started. The Butler Machinery Company Retirement Plan has unique details that must be accounted for early on.
We’re here to help at every stage. Explore our QDRO services or contact us today to get started.
Need Help in a Specific State?
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 Butler Machinery Company Retirement 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.