Introduction
Dividing retirement assets during a divorce can be one of the most financially significant—and emotionally charged—parts of the process. If you or your spouse has a retirement account through the Avantax Inc.. 401(k) Retirement Plan, it’s important to understand how those funds can be split legally and fairly. This is where a Qualified Domestic Relations Order (QDRO) comes into play.
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.
In this article, we’ll walk you through what you need to know when dividing the Avantax Inc.. 401(k) Retirement Plan in a divorce—including how contributions are handled, common challenges like loan balances and vesting, and what steps to take to protect your financial future.
What Is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order (QDRO) is a special court order that allows for the division of retirement plan benefits between divorcing spouses. Without a QDRO, the plan administrator for the Avantax Inc.. 401(k) Retirement Plan cannot legally transfer any portion of the retirement account to a former spouse or alternate payee, even if your divorce decree says they should get a share.
Importantly, a QDRO must be written to satisfy both federal law (under ERISA and the Internal Revenue Code) and plan-specific rules. Each retirement plan, including this one, has its own approval requirements, so accuracy and precision matter.
Plan-Specific Details for the Avantax Inc.. 401(k) Retirement Plan
You’ll need specific information about the plan when preparing your QDRO. Here is what’s publicly available for the Avantax Inc.. 401(k) Retirement Plan:
- Plan Name: Avantax Inc.. 401(k) Retirement Plan
- Sponsor: Avantax Inc.. 401(k) retirement plan
- Address: 3200 OLYMPUS BLVD., 1ST FLOOR
- Plan Effective Dates: 1999-01-01 to current (Active status as of 2024-09-03)
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown
- Assets: Unknown
When drafting the QDRO, we strongly recommend tracking down the plan’s Summary Plan Description (SPD) and QDRO procedures, which will clarify how to get pre-approval and what limitations may apply for division.
What Makes 401(k) Plans Like This One Tricky in Divorce?
The Avantax Inc.. 401(k) Retirement Plan is a typical defined contribution plan, meaning the account balance can be split between spouses based on a negotiated percentage or specific dollar value. However, there are four key issues that come up again and again in QDROs involving corporate 401(k) plans like this one:
Employee and Employer Contributions
Both employee deferrals and employer matching contributions may be part of the plan account. However, employer contributions may be subject to a vesting schedule. If the participant spouse isn’t fully vested, some of the account may not be eligible for division. Your QDRO should clarify whether the alternate payee is entitled to the non-vested portion if it later becomes vested.
Loan Balances
If the participant took out a loan against their 401(k), this loan reduces the account balance that can be divided. The QDRO can either include or exclude the loan amount from the marital share. This is a hot-button issue that should be addressed clearly in the order to avoid disputes later.
Roth vs. Traditional Subaccounts
Many modern 401(k) plans have both Roth (after-tax) and traditional (pre-tax) balances. These are subject to entirely different tax treatments. A well-drafted QDRO should address how much of each account type is included in the award and how each will be handled by the receiving spouse’s account or IRA.
Gains and Losses
Will the alternate payee receive gains and losses on their share from the date of division to the date of transfer? While some plans accept either option, the Avantax Inc.. 401(k) Retirement Plan may have its own default rules in the absence of specifics. Be clear in the language to avoid ambiguity.
QDRO Process for the Avantax Inc.. 401(k) Retirement Plan
Here’s how dividing this specific plan typically works:
Step 1: Gather the Necessary Information
- Obtain the plan’s Summary Plan Description and QDRO intake forms.
- Get account statements showing growth and contributions over time.
- Determine the marital portion—this is often from the date of marriage to the date of separation.
Step 2: Draft the QDRO
This is where the language needs to fit both federal rules and the Avantax Inc.. 401(k) retirement plan’s internal requirements. We’ll need to handle:
- Vesting limitations
- Loan offset treatment
- Whether gains/losses are included
- Separate Roth and traditional account designations
Step 3: Submit for Pre-Approval (If Applicable)
Some administrators welcome a pre-approval review before the order is filed; others require a signed, court-approved copy. We handle all communication with the plan administrator to figure out what’s needed in your case. This reduces delays later.
Step 4: Get the Order Filed and Certified
Once the draft is approved, we file the QDRO with the court. Some counties require extra formatting or clerk processing steps—we handle that, too.
Step 5: Admin Submission and Follow-Up
The final step is submitting to the plan administrator and ensuring timely processing. We don’t just hand off the QDRO and wish you luck—we track it to completion, which avoids mistakes that can delay division or result in missed payments.
Avoid These Common QDRO Mistakes
Don’t underestimate how easy it is to make costly QDRO errors. Common issues in dividing 401(k) plans include:
- Failing to address plan loans
- Ignoring Roth subaccount distinctions
- Not clarifying how gains and losses are treated
- Using vague effective dates
- Leaving out future vesting provisions
We’ve compiled a list of common QDRO mistakes here that you can avoid by choosing experienced help like PeacockQDROs.
Timing: How Long Will It Take?
The timing for a QDRO on the Avantax Inc.. 401(k) Retirement Plan can vary based on accuracy, court backlog, and how cooperative the plan administrator is. Some QDROs get processed in 60 days; others take six months. Check out these 5 key factors that influence QDRO timing.
Why Choose PeacockQDROs for Your Avantax QDRO
We know the ins and outs of QDRO compliance for corporate 401(k) plans in the general business sector. Our process ensures nothing falls through the cracks—from plan-specific drafting to administrator correspondence and final follow-up. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
Don’t leave this critical step to chance—check out our QDRO services for more information, or get in touch with us if you’re uncertain how this process impacts your divorce settlement.
Get Experienced QDRO Help Today
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 Avantax Inc.. 401(k) Retirement 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.