Dividing the Vericity Holdings, Inc.. 401(k) Plan During Divorce
Dividing retirement assets during divorce can be complicated—especially when it involves company-sponsored retirement plans like the Vericity Holdings, Inc.. 401(k) Plan, sponsored by Vericity holdings, Inc.. 401(k) plan. Whether you’re the plan participant or the alternate payee (usually the ex-spouse), understanding how to approach this division legally and effectively through a Qualified Domestic Relations Order (QDRO) is critical.
At PeacockQDROs, we’ve completed thousands of QDROs from beginning to end. That means we don’t just hand you a drafted order and wish you luck. We handle the drafting, preapproval (if the plan permits), court filing, plan submission, and follow-up until everything is finalized. That’s what sets us apart from firms that only prepare documents and leave the rest to you.
What Is a QDRO and Why You Need One for the Vericity Holdings, Inc.. 401(k) Plan
A QDRO, or Qualified Domestic Relations Order, is a legal order that allows the division of retirement benefits without triggering early withdrawal taxes or IRS penalties. If a divorce judgment includes division of a 401(k), like the Vericity Holdings, Inc.. 401(k) Plan, a QDRO is legally required to separate and distribute the funds to a non-participant spouse.
Without a QDRO, a divorce decree—even if signed by a judge—is not enough to legally authorize the plan administrator to divide retirement plan assets. Every QDRO must meet both IRS rules and the specific terms of the plan it applies to.
Plan-Specific Details for the Vericity Holdings, Inc.. 401(k) Plan
Here are the data points you need to keep on hand when preparing a QDRO for this plan:
- Plan Name: Vericity Holdings, Inc.. 401(k) Plan
- Sponsor: Vericity holdings, Inc.. 401(k) plan
- Plan Address: 1350 E Touhy Ave Ste 205W
- Plan Effective Dates: 2004-12-01 to Unknown
- Plan Year: Unknown to Unknown
- Plan Status: Active
- Plan Type: 401(k)
- Organization Type: Corporation
- Industry: General Business
- Employer Identification Number (EIN): Unknown
- Plan Number: Unknown
Even without knowing the EIN or plan number, we can still help gather this information for QDRO preparation. Plan administrators are typically cooperative when requests are made correctly through legal channels.
Common QDRO Challenges in 401(k) Division
1. Employee and Employer Contributions
401(k) plans like the Vericity Holdings, Inc.. 401(k) Plan consist of direct contributions made by the employee and often include matching contributions from the employer. The QDRO should clearly specify whether both types of contributions are being divided and how.
For example, you can use language to divide just the marital portion or the full plan value. The marital portion typically includes what was contributed and earned during the marriage period only. If you fail to clarify this, the plan administrator may default in ways that don’t match your divorce agreement—or may reject the QDRO altogether.
2. Vesting Schedules & Forfeiture Rules
Employer contributions often come with vesting schedules—meaning the participant may forfeit part of the employer contributions if they haven’t worked long enough for them to be fully “vested.” The Vericity Holdings, Inc.. 401(k) Plan likely includes a vesting schedule, and this impacts how much is actually available to divide.
Unvested portions generally cannot be distributed to the alternate payee. This must be addressed in the QDRO, especially if there’s the possibility that the participant may vest additional amounts after the divorce judgment is entered.
3. Outstanding Loan Balances
Participants in many 401(k) plans—including the Vericity Holdings, Inc.. 401(k) Plan—can borrow against their account. If there’s a loan balance, it affects the net amount available for division. The QDRO should clearly state either:
- Whether the division is before or after accounting for the loan balance, and
- Whether the alternate payee receives a portion of the remaining account or the full account including the loan amount
Failing to clarify this can delay approval or lead to incorrect distributions.
4. Roth vs. Traditional Contributions
The Vericity Holdings, Inc.. 401(k) Plan may allow for both Roth and traditional contributions. Roth 401(k) contributions are made after-tax, while traditional contributions are made pre-tax. These two types of funds should not be mixed in a QDRO because they have different tax consequences.
It’s usually best to divide each type separately. If the alternate payee is receiving a portion of both traditional and Roth balances, the QDRO needs to spell that out distinctly to avoid future tax burdens or improper transfers.
QDRO Drafting: Getting It Right the First Time
Every retirement plan, including the Vericity Holdings, Inc.. 401(k) Plan, has its own internal procedures and requirements. Some plans offer pre-approval processes to help avoid rejections later. Others have strict formatting requirements or require plan-specific model QDROs.
At PeacockQDROs, we confirm the plan’s specifications directly with the administrator before we draft anything. Then we handle reviews, revisions, court filings, and final plan submission. That ensures you don’t end up stuck in a loop of corrections, delays, or rejections.
Avoid These Common Mistakes
We’ve documented some of the most common (and costly) QDRO errors that derail divorces and delay distributions. Be sure to avoid these:
- Failing to specify the valuation date
- Ignoring unvested balances and future vesting
- Combining Roth and traditional accounts
- Overlooking loans or dividing net vs. gross balances without explanation
- Using informal or generic QDRO templates
Learn more about common pitfalls on our dedicated page: Common QDRO Mistakes.
How Long Does a QDRO Take?
There’s no one-size-fits-all answer. The timeline depends on several factors—including how quickly courts approve orders and how responsive the plan administrator is. We explain the five most important factors here: QDRO Timing Factors.
Why Choose PeacockQDROs for Your Divorce QDRO?
We’ve processed thousands of QDROs from start to finish—and we’re not done until everything is filed, approved, and accepted by the plan. Our team has near-perfect reviews because we do things the right way—no cutting corners or one-size-fits-all templates.
When you’re dealing with a 401(k) plan from a corporate sponsor like Vericity holdings, Inc.. 401(k) plan, you need precision. That’s what we bring to every file.
Explore more about how we can help at PeacockQDROs QDRO Services.
Conclusion
Dividing the Vericity Holdings, Inc.. 401(k) Plan in a divorce means understanding the intricacies of employer contributions, vesting, outstanding loans, and Roth vs. traditional funds. The QDRO process isn’t just about drafting a document—it’s about aligning with plan rules, tax compliance, and court procedures.
If your divorce involved this plan and you want to protect your financial interests, make sure you get a QDRO prepared and administered correctly—from beginning to end.
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 Vericity Holdings, Inc.. 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.