Introduction
Dividing a retirement account like the American First National Bank 401(k) Retirement Savings Plan during divorce can feel overwhelming. With 401(k) plans, you’re not just talking about account balances—you’re also dealing with employee contributions, employer matches, vesting rules, loans, and potentially both traditional and Roth sub-accounts. To divide this plan legally, you’ll need a Qualified Domestic Relations Order (QDRO), which is a separate court order used to instruct the plan administrator on how to split the account between spouses or former spouses.
At PeacockQDROs, we’ve handled thousands of QDROs from start to finish, giving clients peace of mind throughout the entire process: drafting, preapproval, court filing, submission, and communication with the plan administrator. That’s what sets us apart from firms that only prepare the document and leave the legwork to you.
Plan-Specific Details for the American First National Bank 401(k) Retirement Savings Plan
Here’s what we know about this retirement plan:
- Plan Name: American First National Bank 401(k) Retirement Savings Plan
- Sponsor: Unknown sponsor
- Address: 20250707160427NAL0009388578001, 9999 BELLAIRE BLVD
- Plan Dates: Plan in effect from 1998-01-01 through at least 2024
- Organization Type: Business Entity
- Industry: General Business
- Status: Active
- Participants: Unknown
- Assets: Unknown
- EIN & Plan Number: These will be required in your QDRO paperwork but are currently not publicly listed
This is an active 401(k) plan sponsored by a business entity in the general business industry, which means it likely includes a mix of employee deferrals and employer contributions subject to various rules.
How a QDRO Works for a 401(k) Plan
A QDRO is a legal order issued by a state domestic relations court that tells the plan administrator how to divide a participant’s retirement plan. Without a QDRO, the plan administrator can’t legally split the account or pay out benefits to the non-employee spouse (known as the alternate payee).
For the American First National Bank 401(k) Retirement Savings Plan, the plan administrator must review and approve the QDRO before any division takes place. That’s why it’s essential to get every detail right.
Who Can Receive Benefits?
The alternate payee is typically a former spouse but may also be a child or other dependent per the divorce decree. The QDRO specifies what portion of the account the alternate payee gets and when they can access it.
Key 401(k) Issues in QDROs
401(k) plans have several unique features that make QDRO drafting especially tricky. Let’s go through some key areas that apply specifically to the American First National Bank 401(k) Retirement Savings Plan.
Employee vs. Employer Contributions
401(k) accounts can include both employee deferrals and employer matches or profit-sharing contributions. In a divorce, both types can be divided, but employer contributions might be subject to vesting rules. If the employee spouse (the participant) hasn’t worked at the company long enough, some of the employer contributions may not be fully owned (or “vested”)—which means they can’t be divided.
Vesting Schedules and Forfeited Balances
Most 401(k) plans have a vesting schedule for employer contributions. A typical schedule might vest 20% per year over five years. If the participant leaves the company early, the unvested portion is forfeited. A QDRO should account for these unvested funds and clearly indicate how forfeitures are handled. For example, your order may specify that the alternate payee receives 50% of only the vested portion of the employer contributions as of a specific date.
Loan Balances and Repayment
If the participant took out a loan from the American First National Bank 401(k) Retirement Savings Plan, the account balance may appear lower than it would be without the loan. But a QDRO must decide whether to divide:
- The gross balance (before subtracting the loan)
- Or the net balance (after subtracting the outstanding loan amount)
This can significantly affect the alternate payee’s share. You also need to consider whether the loan was used for marital expenses. Each situation is different, and your QDRO should spell out how such liabilities are treated to avoid confusion later.
Roth vs. Traditional Balances
This plan may include both pre-tax (traditional) and after-tax (Roth) contributions. These two types are subject to different tax treatments. Your QDRO should specify whether each account type is divided proportionally or if one type is divided exclusively. The alternate payee may have tax implications based on what type of funds they receive, and this should be clearly stated in the order to avoid post-division problems.
Strategies to Divide the American First National Bank 401(k) Retirement Savings Plan
Pick the Right Valuation Date
The plan may allow you to use the date of separation, date of filing, or date of the order as the reference for valuation. The valuation date can greatly impact the dollar amount assigned to the alternate payee, especially if the market has changed since the marriage ended. Choose the date wisely and make sure it’s clearly included in your QDRO.
Determine the Division Method
Courts and couples typically divide retirement plans using a percentage (e.g., 50% of the marital portion) or a flat dollar amount. If you’re using a percentage, define what part of the account is “marital”—e.g., contributions and gains from the date of marriage to the date of separation.
Preapproval by the Plan Administrator
Before submitting your QDRO to the court, it’s a good idea to get it preapproved by the plan administrator for the American First National Bank 401(k) Retirement Savings Plan. Some plans have specific QDRO model language or preferences. At PeacockQDROs, we handle preapproval when applicable so clients don’t run into delays or rejections later in the process.
Common Mistakes to Avoid
There are plenty of areas where QDROs can go wrong. Here are a few mistakes we see often:
- Failing to specify the valuation date
- Not addressing outstanding 401(k) loan balances
- Forgetting about Roth vs. traditional components
- Omitting language about future earnings and losses
- Failing to get preapproval before going to court
We’ve outlined more mistakes and how to avoid them at Common QDRO Mistakes.
How Long Does a QDRO Take?
We’ve answered that with real-world timelines and factors that influence QDRO turnaround here: 5 Factors That Determine How Long It Takes to Get a QDRO Done. One of those key factors is whether the plan administrator, like the one for the American First National Bank 401(k) Retirement Savings Plan, has a preapproval process in place.
Why Work with PeacockQDROs?
At PeacockQDROs, we don’t just hand off a PDF and hope for the best. We’re with you from drafting to court filing to final plan administrator approval. Our team has successfully processed thousands of QDROs, which means we know how to work with plans like the American First National Bank 401(k) Retirement Savings Plan.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way—the first time.
Everything you need to get started is here: QDRO Services at PeacockQDROs
Final Thoughts
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 American First National Bank 401(k) Retirement Savings 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.