Why a QDRO is Critical When Dividing the Akebia Therapeutics 401(k) Plan in Divorce
If you or your spouse has a retirement account in the Akebia Therapeutics 401(k) Plan through Akebia therapeutics, Inc., dividing it in a divorce means more than just agreeing who gets what. You’ll need a Qualified Domestic Relations Order—commonly called a QDRO—to legally divide these retirement savings without triggering taxes or penalties. But not all QDROs are the same. Getting it right means understanding the specific rules of the plan, especially when the plan involves complex features like vesting schedules, loans, and different account types.
Plan-Specific Details for the Akebia Therapeutics 401(k) Plan
Here’s what we know about the Akebia Therapeutics 401(k) Plan, as sponsored by Akebia therapeutics, Inc.:
- Plan Name: Akebia Therapeutics 401(k) Plan
- Sponsor: Akebia therapeutics, Inc.
- Address: 245 First Street, Suite 1400
- Plan Dates: Active from at least January 1, 2008, through current plan year (2024)
- Status: Active
- Industry: General Business
- Organization Type: Corporation
- Plan Number and EIN: Unknown (but required for QDRO submission)
While some details like EIN and plan number are unspecified here, these are critical pieces of information when preparing a QDRO. At PeacockQDROs, we help gather that information directly from the plan administrator when it’s not available from your divorce documents.
Key Concepts When Dividing a 401(k) Through a QDRO
What a QDRO Does
A QDRO is a legal order that tells the plan administrator how to divide a participant’s retirement benefits between the participant and an alternate payee (usually the ex-spouse). Without a QDRO, even if the divorce judgment says the benefits should be shared, the plan won’t divide anything.
Why You Need a QDRO for the Akebia Therapeutics 401(k) Plan
Because this is a 401(k) plan governed by ERISA, a QDRO is the only way to divide the account in a divorce without triggering early withdrawal penalties or immediate tax liability. The alternate payee can roll over their share into their own retirement account, preserving tax deferred growth.
Specific 401(k) Factors to Consider in a Divorce
1. Employee and Employer Contributions
Employee contributions are fully owned by the plan participant, but employer contributions might be subject to a vesting schedule. In the Akebia Therapeutics 401(k) Plan, it’s likely that Akebia therapeutics, Inc. matches a portion of employee contributions. The QDRO must specify whether unvested portions are to be included or excluded.
2. Vesting Schedules and Forfeited Amounts
401(k) plans often use a graded or cliff vesting schedule for employer contributions. If your divorce is happening while the participant is still employed, part of the employer contributions may be unvested and therefore not divisible. However, some spouses agree to divide both vested and future employer contributions earned during the marriage. The QDRO must address this clearly to avoid disputes and delays.
3. Outstanding 401(k) Loans
If the participant has taken a loan against their Akebia Therapeutics 401(k) Plan account, the loan balance will reduce the plan’s distributable value. But the QDRO can be written to either:
- Assign the loan only to the participant
- Exclude the loan from the alternate payee’s share
- Share the impact of the loan equally
At PeacockQDROs, we guide our clients by requesting a loan balance statement and advising on the fair treatment in the QDRO.
4. Traditional vs. Roth 401(k) Accounts
The plan may allow both traditional (pre-tax) and Roth (post-tax) contributions. These must be treated separately in the QDRO. You can’t lump them together. For example, if your spouse has $75,000 in pre-tax funds and $25,000 in a Roth sub-account, the QDRO should specify which account the alternate payee’s percentage comes from—or how it applies to each. This prevents serious tax issues after the transfer.
Common Pitfalls to Avoid
Many people think that the divorce settlement takes care of everything. But here are common mistakes when dividing 401(k) plans:
- Failing to submit a QDRO at all
- Using vague language not accepted by the plan administrator
- Overlooking loan balances or unvested employer contributions
- Not distinguishing between Roth and traditional funds
- Assuming the plan will divide assets immediately after divorce
We cover these pitfalls and how to avoid them on our Common QDRO Mistakes resource page.
Timeline: How Long Does It Take to Get a QDRO Done?
From start to finish, the process can take anywhere from a few weeks to several months, depending on these five key factors:
- Whether the retirement plan requires pre-approval
- How fast courts review and sign the QDRO
- Accuracy and completeness of the QDRO itself
- How responsive the plan administrator is
- If both parties agree or dispute terms
See our full breakdown here: QDRO timelines explained.
Why Choose PeacockQDROs for Your Akebia Therapeutics 401(k) Plan
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. With something as important as dividing retirement benefits, you want to avoid costly errors. We take care of the details so you can have peace of mind.
What You’ll Need to Provide
To move forward with a QDRO for the Akebia Therapeutics 401(k) Plan, we typically request:
- A fully signed Judgment of Dissolution or Divorce Decree
- Participant’s retirement account statement (confirming plan type and balances)
- Plan SPD or contact information for administrator (if available)
- Full legal names, addresses, and birthdates of both parties
Even if you don’t know the plan number or EIN, we can help obtain those directly.
Summary: Know Your QDRO Rights and Options
The Akebia Therapeutics 401(k) Plan offers meaningful retirement benefits for employees of Akebia therapeutics, Inc. But in divorce, those benefits can become a point of conflict without a properly executed QDRO. Whether it’s sorting through loans, handling unvested employer contributions, or dividing pre-tax and after-tax accounts, this plan requires precise legal drafting and experienced follow-up.
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 Akebia Therapeutics 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.