Dividing a 401(k) in Divorce: What You Need to Know About QDROs
Dividing retirement benefits in a divorce can be technical, especially when the account in question is a 401(k) like the Bolus Freight Systems 401(k) Profit Sharing Plan. These types of plans often involve multiple account types, employer contributions, vesting schedules, and sometimes outstanding loan balances. To properly transfer a portion of these assets to a former spouse, a Qualified Domestic Relations Order (QDRO) is legally required.
At PeacockQDROs, we’ve handled thousands of QDROs from start to finish—including drafting, preapproval (if allowed by the plan), court filing, and submission—so divorcing spouses don’t get stuck in the system. The Bolus Freight Systems 401(k) Profit Sharing Plan comes with unique wrinkles that must be addressed carefully for a QDRO to be accepted and implemented correctly.
Plan-Specific Details for the Bolus Freight Systems 401(k) Profit Sharing Plan
- Plan Name: Bolus Freight Systems 401(k) Profit Sharing Plan
- Sponsor: Unknown sponsor
- Plan Address: 20250618101747NAL0003313040001, 2024-01-01
- Employer Identification Number (EIN): Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Business Entity
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
Even with limited public plan information, there are strategies and concerns common to 401(k) plans that apply here. Let’s walk through what divorcing couples should consider when dividing the Bolus Freight Systems 401(k) Profit Sharing Plan through a QDRO.
Drafting a QDRO for the Bolus Freight Systems 401(k) Profit Sharing Plan
Understanding the Role of the QDRO
A QDRO is a court order that instructs the plan administrator to divide a retirement account between a participant (usually the employee) and the alternate payee (usually the former spouse). The QDRO must meet both federal requirements under ERISA and the plan’s internal procedures for approval.
Who Prepares the QDRO?
You can’t just write up a QDRO on your own. Courts won’t help you do it, and many attorneys won’t do more than refer you to someone else. That’s what we’re here for. At PeacockQDROs, we know the ins and outs of these retirement plans—especially with 401(k)s like the Bolus Freight Systems 401(k) Profit Sharing Plan. We handle it from beginning to end, including follow-up with the plan administrator after the court signs the order.
Key Issues in Dividing the Bolus Freight Systems 401(k) Profit Sharing Plan
1. Employee vs. Employer Contributions
Most 401(k) plans are made up of:
- Employee deferrals: Contributions withheld from paychecks
- Employer contributions: Matches or profit-sharing provided by the plan sponsor
It’s essential to identify which portions are considered marital property. In many divorces, only the amounts contributed during the marriage are divided. A good QDRO specifies what part of the account is marital and how those contributions are to be split. Employer contributions often require attention to whether they were fully vested.
2. Vesting Schedules and Forfeitures
Most employer contributions (matches or profit-share components) are subject to a vesting schedule. That means if the employee hasn’t worked long enough, not all employer-contributed funds are “owned” yet. If the QDRO attempts to award unvested amounts, the alternate payee may receive less than expected—or nothing at all—from those funds.
A solid QDRO for the Bolus Freight Systems 401(k) Profit Sharing Plan must take vesting into account and include proper language about how to deal with the forfeiture of unvested amounts.
3. Outstanding Loan Balances
Participants in 401(k) plans can borrow against their accounts. If a loan is outstanding at the time of divorce, there’s a decision to make: will the alternate payee share in the outstanding loan or not? There are pros and cons to including or excluding the loan from the division formula, and we help clients think through their options.
Some QDROs treat the loan as part of the total account balance (but not payable to the alternate payee until repaid); others exclude the loan altogether. Every QDRO we draft for plans like the Bolus Freight Systems 401(k) Profit Sharing Plan addresses loan balances directly so there’s no confusion during implementation.
4. Roth vs. Traditional 401(k) Contributions
If the plan contains both traditional (pre-tax) and Roth (after-tax) accounts, each must be handled separately within the QDRO. Roth accounts grow tax-free, while traditional accounts are taxed upon withdrawal. The IRS won’t allow Roth and traditional funds to be mixed in a single transfer, so your QDRO must address these account types clearly.
In many cases, the alternate payee will receive two sub-accounts—one for Roth and another for traditional funds. We help our clients make sure the tax aspects of their QDRO division are clear to avoid unpleasant surprises later.
Required Documentation for Plan Division
When dividing the Bolus Freight Systems 401(k) Profit Sharing Plan, the following details (even if initially unknown) will need to be clarified with the plan administrator:
- Employer Identification Number (EIN)
- Official Plan Number
- Summary Plan Description (SPD) or QDRO guidelines
While the current public information on this plan lists the EIN and Plan Number as unknown, we make direct contact with the plan administrator to pull the required documentation if our clients can’t locate it themselves.
Common Pitfalls in QDROs for 401(k) Plans
We often advise couples on avoiding mistakes like:
- Failing to specify pre-marital vs. marital contributions
- Not dealing with unvested employer contributions
- Ignoring plan loans or including them incorrectly
- Combining Roth and traditional account division in one lump-sum order
You can read more about these mistakes in our guide to common QDRO mistakes.
Timelines and What to Expect
QDROs don’t happen overnight. The timeline can depend on:
- How fast the court processes the order
- Whether the plan administrator requires preapproval
- Current loan activity or vesting schedule issues
To understand how long a typical QDRO might take, visit our resource: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Why Work with PeacockQDROs?
At PeacockQDROs, we handle the entire QDRO process—not just the drafting. We engage with the court, take care of plan communications, handle preapprovals, and follow through with the administrator until the QDRO is accepted and processed. That’s where we stand out compared to firms that hand you the document and leave the rest to you.
We maintain near-perfect reviews and pride ourselves on doing things the right way. You can start by reviewing our services here: QDRO Services.
Need Help Dividing the Bolus Freight Systems 401(k) Profit Sharing Plan?
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 Bolus Freight Systems 401(k) Profit Sharing 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.