Understanding QDROs and the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan
Dividing retirement accounts like the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan in a divorce requires a Qualified Domestic Relations Order, also known as a QDRO. This legal document tells the plan administrator exactly how to divide the account between the employee (called the participant) and their former spouse (called the alternate payee). Without a QDRO, the plan cannot legally pay any portion of the account to anyone other than the employee.
Not all QDROs are the same. Each employer-sponsored retirement plan has its own rules, procedures, and quirks that must be followed exactly. That’s especially true for 401(k) plans, which often include employer contributions, vesting schedules, loan balances, and both Roth and traditional account components. The A-1 Freeman Moving & Storage, Inc.. 401(k) Plan is no exception.
Plan-Specific Details for the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan
- Plan Name: A-1 Freeman Moving & Storage, Inc.. 401(k) Plan
- Sponsor: A-1 freeman moving & storage, Inc.. 401k plan
- Address: 11517 N. BROADWAY EXTENSION
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Corporation
- Effective Date: 1990-10-01
- Plan Status: Active
- Plan Year: Unknown to Unknown
- Participants: Unknown
- Assets: Unknown
- EIN and Plan Number: These must be obtained directly from the plan administrator or statements for QDRO processing
Although certain details like the EIN and Plan Number are not publicly available here, those are required for drafting and processing the QDRO. If you’re proceeding with a divorce and planning to divide this plan, be sure to locate a recent statement or reach out to the plan administrator to confirm those numbers.
What Makes 401(k) Plan QDROs Unique
Unlike pensions, which provide a monthly benefit payable after retirement, 401(k) plans like the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan are defined contribution accounts. The value of the plan depends on the amount of money contributed and investment performance. This creates several challenges when dividing the account:
- Multiple account types (Traditional vs. Roth)
- Unvested employer contributions
- Outstanding loans
Each of these factors needs to be specifically addressed in the QDRO to prevent disputes, delays, or improper distributions.
Handling Roth and Traditional Balances
The A-1 Freeman Moving & Storage, Inc.. 401(k) Plan may contain both pre-tax (Traditional) and post-tax (Roth) sources. It’s important that your QDRO attorney includes language in the order to divide each account type proportionally—or as separately agreed on. The IRS and plan administrator treat these accounts differently, and failure to recognize account types can cause taxable mistakes or improper distribution of funds.
Addressing Vesting and Employer Contributions
401(k) plans often include employer matching or profit-sharing contributions that are subject to a vesting schedule. If your divorce is occurring before all those contributions are fully vested, the unvested portion will not be available for division. A well-drafted QDRO for the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan should:
- Specify whether the alternate payee can share in vested balances as of a certain date
- Clarify that only vested amounts, not future unvested contributions, are subject to division
If this distinction isn’t spelled out, it could lead to confusion, delay by the plan administrator, or an inaccurate division of the retirement assets.
What Happens to Outstanding Loan Balances
Many participants borrow from their 401(k)s. If there’s an outstanding loan at the time of divorce, it affects the plan balance—and that affects what the alternate payee receives. With the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan, the QDRO should clearly state whether the loan balance is to be:
- Included in the account balance when determining the alternate payee’s share
- Excluded from the determination of the division
This decision should be made based on the overall divorce agreement. If it isn’t addressed directly in the QDRO, the plan administrator may default to a method that surprises one or both parties.
Key Language to Include in a QDRO for This Plan
Each plan—including the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan—has specific administrative requirements. QDRO language should be tailored to meet those needs and avoid rejection by the plan administrator. A solid QDRO includes details such as:
- Participant and alternate payee full names, addresses, and social security numbers
- Clear statement of the percentage or dollar amount awarded
- Date on which the account value is to be determined (called the division date)
- Separate directions for handling Traditional and Roth balances, if applicable
- Provisions for vesting, market gains/losses, and loans
At PeacockQDROs, we confirm these items against the plan’s document and pre-approval procedures if available. That minimizes headaches and ensures smooth processing.
Preapproval and Filing: Why It Matters
Some plans provide for preapproval of QDROs before court filing—others do not. In either case, your best option is to have a firm that handles every step of the process. 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. Want to know more about timelines? Check out these five factors that affect how long it takes to finalize a QDRO.
What Can Go Wrong Without a Proper QDRO?
If the QDRO for the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan isn’t done properly, common problems include:
- Delayed payouts to the alternate payee
- Tax consequences due to improper Roth or Traditional asset handling
- Incorrect division if vesting or loans aren’t addressed correctly
We’ve outlined several common pitfalls in our helpful guide: Common QDRO Mistakes.
Tips to Speed Up the QDRO Process
Want to reduce delays with your A-1 Freeman Moving & Storage, Inc.. 401(k) Plan QDRO?
- Gather recent account statements showing account types and loan balances
- Confirm the participant’s vesting status with the plan administrator
- Agree on a specific valuation date in your divorce judgment
- Work with a QDRO attorney who handles start-to-finish service
Don’t forget to check out our overview of the entire QDRO process here: QDRO Process at PeacockQDROs.
Final Thoughts
Dividing the A-1 Freeman Moving & Storage, Inc.. 401(k) Plan in your divorce requires more than just filling out a form. It takes careful planning, specific knowledge of 401(k) rules, and experience with the plan’s administrator to avoid costly errors. Whether you’re the participant or the alternate payee, ensure your order is done right the first time.
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 A-1 Freeman Moving & Storage, 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.