Your Rights to the Hills Bank and Trust Co. 401(k) Profit Sharing Plan: A Divorce QDRO Handbook

Understanding QDROs for the Hills Bank and Trust Co. 401(k) Profit Sharing Plan

Dividing retirement assets during divorce is one of the most technical parts of the property division process—and it’s critical to get it right. If either spouse has benefits under the Hills Bank and Trust Co. 401(k) Profit Sharing Plan, a document called a Qualified Domestic Relations Order (QDRO) is usually required to split those benefits legally. Without a QDRO, any division agreed to in your divorce settlement is not enforceable by the plan administrator.

At PeacockQDROs, we specialize in handling every step of the QDRO process, especially for complex plans like those involving both traditional and Roth 401(k) contributions, vesting issues, and outstanding loan balances. So let’s dive into how you can protect your share of the Hills Bank and Trust Co. 401(k) Profit Sharing Plan in divorce.

Plan-Specific Details for the Hills Bank and Trust Co. 401(k) Profit Sharing Plan

Before drafting a QDRO, it’s important to understand the specific features of the retirement plan involved. Here’s what we know about the Hills Bank and Trust Co. 401(k) Profit Sharing Plan:

Plan Name: Hills Bank and Trust Co. 401(k) Profit Sharing Plan
Sponsor: Hills bank and trust company
Address: 590 West Forevergreen Road
Organization Type: Business Entity
Industry: General Business
Effective Date: Unknown
Status: Active
Assets: Unknown
Plan Number and EIN: These must be obtained from the plan administrator at the time of QDRO submission, as they’re needed for the official order.

Because the plan sponsor, Hills bank and trust company, is a business entity in the general business sector, the QDRO process will follow typical 401(k) plan requirements but with careful attention to certain details, as we’ll outline below.

What a QDRO Accomplishes in Divorce

A QDRO legally directs the plan administrator of the Hills Bank and Trust Co. 401(k) Profit Sharing Plan to pay a portion of the participant’s account to their former spouse (referred to as the “alternate payee”). There are no tax penalties for the transfer if done under a valid QDRO. The alternate payee may choose to roll the funds into their own qualified plan or take a direct distribution, subject to ordinary taxes.

Key Issues When Dividing the Hills Bank and Trust Co. 401(k) Profit Sharing Plan

1. Employee vs. Employer Contributions

This plan likely includes both employee deferrals and employer profit-sharing contributions. In divorce, both types of contributions can be divided as marital property—but only if they are vested. Be sure your marital settlement agreement clarifies whether both contribution types are to be divided, and in what proportion.

2. Vesting Schedules

Employer contributions often have a vesting schedule. If the participant is not fully vested, any unvested employer contributions are not yet owned by the employee and may be forfeited if they leave the company. A QDRO can only divide the vested portion. We always recommend confirming with the plan administrator which funds are vested as of the date of divorce.

3. Handling Outstanding Loan Balances

If the participant has an active loan against their 401(k), this reduces the account value. The QDRO should clearly state whether the alternate payee’s share is calculated before or after accounting for the outstanding loan. It’s a critical drafting point—omitting loan treatment causes disputes and delays. Most alternate payees avoid being responsible for the loan itself, but confirmation with the plan’s QDRO procedures is a must.

4. Traditional vs. Roth 401(k) Accounts

The Hills Bank and Trust Co. 401(k) Profit Sharing Plan may include both pre-tax (traditional) and after-tax (Roth) deferrals. These account types have very different tax consequences. A good QDRO will allocate shares proportionally between Roth and traditional balances unless you specify otherwise. We highly recommend making this distinction clear so both parties understand the tax implications of their respective shares.

Timeline and Processing Tips

QDROs for the Hills Bank and Trust Co. 401(k) Profit Sharing Plan must follow ERISA rules and internal plan procedures. Here’s a general processing timeline you can expect:

Draft QDRO incorporating plan-specific language
Submit QDRO for preapproval (if the plan accepts this step)
Submit QDRO for court signature
Send signed QDRO to the plan administrator
Plan administrator reviews and implements division

To better understand how long this all takes, check out our guide: 5 Factors That Determine How Long It Takes to Get a QDRO Done.

Common QDRO Pitfalls to Avoid

We’ve seen thousands of QDROs processed—and we also know the common mistakes. Don’t let your order be rejected over avoidable errors. A few of the most frequent issues we see in 401(k) QDROs:

Failing to mention the plan name accurately (must be exactly: Hills Bank and Trust Co. 401(k) Profit Sharing Plan)
Omitting loan repayment instructions
Assuming all funds are 100% vested
Not specifying Roth vs. traditional allocation
Improper wording that causes delays or denial from the administrator

To avoid these missteps, review our resource on common QDRO mistakes.

Why Choose PeacockQDROs for Your Hills Bank and Trust Co. 401(k) Profit Sharing Plan 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 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. Trust your hard-earned retirement division to a team that understands the details and doesn’t miss a step.

Explore more here: QDRO resources at PeacockQDROs.

Recommended Next Steps

If you or your ex-spouse has an account with the Hills Bank and Trust Co. 401(k) Profit Sharing Plan, here’s what to do next:

Request a full copy of the plan’s summary plan description (SPD)
Confirm current account values, vested balances, and any loan activity
Gather the full legal names, dates of birth, and address for both parties
Contact a QDRO specialist to begin drafting your order