Introduction
Dividing retirement assets like the Orrstown Bank 401(k) Plan during a divorce can be complicated. Unlike checking accounts or real estate, 401(k) plans come with specific rules, restrictions, and administrative procedures. To properly divide this type of account, you’ll need a Qualified Domestic Relations Order (QDRO). At PeacockQDROs, we’ve handled thousands of QDROs from start to finish—drafting, preapproving (when required), filing in court, submitting to the plan, and following up with the administrator. If you’re dividing a 401(k), it’s essential to get this right from the beginning.
Plan-Specific Details for the Orrstown Bank 401(k) Plan
Below are the known details for the Orrstown Bank 401(k) Plan, which are critical when preparing a QDRO:
- Plan Name: Orrstown Bank 401(k) Plan
- Sponsor: Unknown sponsor
- Address: 20250718191552NAL0001047411001, 2024-01-01 to 2024-12-31, 1989-01-01, 2695 PHILADELPHIA AVENUE
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Participants: Unknown
- Assets: Unknown
- Plan Number and EIN: Both are currently unknown, but these are required to complete a valid QDRO
Why You Need a QDRO to Divide the Orrstown Bank 401(k) Plan
A QDRO is a court order required by federal law to divide qualified retirement plans like the Orrstown Bank 401(k) Plan between divorcing spouses. Without it, even a divorce judgment awarding one spouse a portion of the other’s 401(k) account won’t suffice. The plan administrator won’t process the division without a valid QDRO on file.
Key Components of a QDRO for the Orrstown Bank 401(k) Plan
Each 401(k) plan has its own rules, and this one, sponsored by an “Unknown sponsor” in the General Business sector, likely follows standard industry practices. Here’s what you need to keep in mind:
1. Employee and Employer Contributions
The Orrstown Bank 401(k) Plan probably includes both employee salary deferrals and employer matching contributions. A QDRO should clearly define whether the alternate payee (usually the non-employee ex-spouse) is entitled to all contributions or only the portion earned during the marriage.
- Tip: Include language referencing the marital portion—such as “50% of the participant’s vested account balance accrued from date of marriage to date of separation”—to ensure a fair division.
2. Vesting Schedules and Forfeited Amounts
Many employer contributions in 401(k) plans are subject to vesting schedules. Only vested amounts can be divided under a QDRO. If a participant is not fully vested at the time of divorce, some employer contributions may be forfeitable and unavailable for division.
- Tip: Your QDRO should specify it applies only to “vested” employer contributions as of the division date.
3. Outstanding Loan Balances
If the participant has taken out a loan from their Orrstown Bank 401(k) Plan, the account balance shown may be higher than what’s actually available. A loan doesn’t disappear during divorce—it remains the responsibility of the participant unless otherwise ordered.
- Tip: Clarify in the QDRO whether calculations are done before or after subtracting the loan balance. This impacts how much the alternate payee will receive.
4. Roth vs. Traditional Account Types
The Orrstown Bank 401(k) Plan may include both traditional (pre-tax) and Roth (after-tax) accounts. These accounts are taxed differently upon distribution, and they must be addressed separately in the QDRO.
- Tip: Make sure the QDRO specifies which types of contributions are being assigned and in what proportion.
Common Mistakes to Avoid in Dividing the Orrstown Bank 401(k) Plan
A poorly drafted QDRO can delay or even derail the division process. Some common issues include:
- Failing to specify a correct division date—this leads to dispute about what portion of the account qualifies as marital property.
- Ignoring loan balances—this leads to alternate payees receiving less than expected.
- Omitting specific Roth/traditional account distinctions—this increases tax confusion later.
- Assuming employer contributions are 100% vested—some may be forfeited if the participant hasn’t reached required service years.
See more QDRO pitfalls to avoid here.
How PeacockQDROs Can Help With the Orrstown Bank 401(k) Plan
At PeacockQDROs, we don’t just draft QDROs—we handle the entire process. That includes preapproval with the plan administrator (if they offer it), filing with the court, and resubmitting to the plan for implementation. Most law firms stop at the drafting stage; we keep pushing until your order is finalized and accepted.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. When a client’s future income or retirement security is at stake, shortcuts aren’t acceptable.
Learn more about our process and pricing here: https://www.peacockesq.com/qdros/
Preparing to Divide the Orrstown Bank 401(k) Plan in a Divorce
To speed up the QDRO process, make sure your divorce agreement clearly outlines:
- The percentage or dollar amount assigned to the alternate payee
- The correct name of the plan: Orrstown Bank 401(k) Plan
- The exact division date (date of marital separation, divorce, or judgment)
- Loan balance treatment (include or subtract before division)
- Clarification on Roth vs. traditional accounts
- A statement on vesting limitations (usually only vested amounts are included)
Still have questions about how long a QDRO might take? Read our breakdown of processing timelines here: QDRO timelines explained
What to Do If the Plan Administrator Is “Unknown”
Even though the sponsor for the Orrstown Bank 401(k) Plan is listed as “Unknown sponsor,” you’ll still need to track down the correct plan administrator’s name and contact information. You can request this from the plan participant’s employer or subpoena the summary plan description (SPD) if necessary.
You’ll also need the plan number and EIN—both are required on the actual QDRO. These can often be located on plan statements or the SPD.
Final Thoughts
Dividing the Orrstown Bank 401(k) Plan through a QDRO takes attention to detail, an understanding of retirement plan rules, and persistence in dealing with plan administrators. Mistakes can cause serious delays or cost you money. Get help from professionals who know how to do it right, start to finish.
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 Orrstown Bank 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.