Introduction
Going through a divorce is stressful enough—dividing retirement accounts like the Centric Health 401(k) Plan doesn’t have to make things harder. If you or your spouse has been contributing to this plan, you’ll likely need a Qualified Domestic Relations Order (QDRO) to split the account properly. And because 401(k) plans come with specific rules about employer matches, vesting, and account types like Roth and traditional, it’s critical you get things right the first time.
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. We don’t just write the order—we handle every step, including plan approval, court filing, submission, and follow-up. In this article, we’ll walk you through exactly how to divide the Centric Health 401(k) Plan in a divorce using a QDRO.
Plan-Specific Details for the Centric Health 401(k) Plan
Before drafting or filing a QDRO, it’s essential to know the key details of the retirement plan you’re dealing with. Here’s what we currently know about the Centric Health 401(k) Plan:
- Plan Name: Centric Health 401(k) Plan
- Sponsor: Unknown sponsor
- Address: 2901 Sillect Avenue, Suite 100
- Organization Type: Business Entity
- Industry: General Business
- Status: Active
- Plan Data Years Available: 2020-01-01 to 2020-12-31
- Plan Origin Date: 1988-01-01
- Plan Number and EIN: Unknown (but required for the QDRO submission)
When submitting a QDRO, we’ll need to obtain or confirm the Plan Number and Employer Identification Number (EIN) from the plan itself or through other official records. These are required by nearly all plan administrators.
Why You Need a QDRO to Divide the Centric Health 401(k) Plan
Federal law—specifically ERISA—requires a QDRO to divide a 401(k) plan like the Centric Health 401(k) Plan. Without it, the plan administrator legally cannot transfer or assign plan funds to an ex-spouse (called an “alternate payee”). A divorce decree by itself is not enough.
The QDRO tells the plan:
- Which spouse (participant or alternate payee) is receiving what portion of the account
- Whether the division includes investment gains or losses through the date of distribution
- The handling of any outstanding loan balances
- If the awarded funds go into a rollover IRA or another qualified account
Key QDRO Considerations When Dividing a 401(k) Plan
1. Employee vs. Employer Contributions
In most 401(k) plans like the Centric Health 401(k) Plan, the account holds both employee salary deferrals and any employer matches or profit-sharing contributions. The QDRO can address each type of contribution differently—or divide the entire account as a whole.
Be aware that employer contributions are often subject to a vesting schedule. If you’re the alternate payee, you won’t receive any of those funds unless they were vested as of the cutoff date specified in the QDRO.
2. Vesting and Forfeited Amounts
If you’re dividing a retirement plan through divorce, you need to know how much of the account balance is actually vested. Unvested employer portions may be forfeited if the employee (your ex) left employment before fully vesting. Your QDRO should clearly exclude unvested balances unless agreed otherwise and allowed by the plan rules.
3. Outstanding Loan Balances
The Centric Health 401(k) Plan may allow participants to borrow from their account. If your spouse took a 401(k) loan, that amount typically reduces the account balance before division.
Options during QDRO drafting include:
- Dividing the net account balance (after subtracting the loan)
- Dividing the total balance and allocating the loan itself as part of the participant’s share
There’s no one-size-fits-all answer. The right approach depends on negotiation and the specifics of the situation.
4. Traditional vs. Roth 401(k) Accounts
Some 401(k) plans—including possibly the Centric Health 401(k) Plan—offer both traditional (pre-tax) and Roth (after-tax) subaccounts. These must be handled separately in a QDRO.
If you’re the alternate payee, and you’re awarded Roth funds, the tax-free nature of your distribution needs to be preserved—generally by rolling it into a Roth IRA. If traditional funds are awarded, you’re likely looking at rollover into a traditional IRA or another qualified plan.
Mistakenly mixing Roth and traditional balances is one of the most common—and costly—QDRO errors. Learn more about these pitfalls in our guide to common QDRO mistakes.
Practical Steps to Divide the Centric Health 401(k) Plan
Step 1: Gather Plan Information
You’ll need to confirm details like the Plan Number and EIN from the plan administrator. Additional account statements are helpful for determining values and any subaccounts, like Roth components or outstanding loans.
Step 2: Draft the QDRO
Every QDRO must match the terms and procedures of the plan it applies to. The Centric Health 401(k) Plan will have its own rules, even if it’s a typical 401(k). If the administrator offers preapproval, we strongly recommend submitting a draft QDRO before court filing.
Step 3: Get Court Approval
Once preapproved (if possible), the QDRO needs to be formally entered by the court. This step officially turns it into a court order. Each state has different rules about how to get a QDRO approved, and timelines can vary based on county and case complexity.
Step 4: Submit to the Plan Administrator
With an approved order in hand, submit it to the Centric Health 401(k) Plan’s administrator (whose identity is not yet known in this case, but can be located via DOL or prior plan communications). After receipt, they will process the division and issue instructions for the alternate payee’s share.
Want to know how long the full process can take? Here’s our detailed guide on the 5 factors that determine how long it takes to get a QDRO done.
Why Choose PeacockQDROs
Most law firms stop after drafting the QDRO. At PeacockQDROs, we handle everything—from form completion to final processing with the plan. That includes initial consultation, document creation, preapproval if needed, court filing, and plan follow-up. This “start to finish” model prevents the delays and confusion that happen when clients are left to do the legwork alone.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. See how we keep the process simple: QDRO Services.
Final Thoughts
Dividing a 401(k) plan like the Centric Health 401(k) Plan takes more than just a few lines in your divorce decree. From vesting and loan issues to Roth account transfers and employer contributions, these plans demand careful attention. Getting professional guidance ensures your share is protected—and that things don’t fall through the cracks.
Whether you’re the participant or the alternate payee, a QDRO done correctly guarantees everyone gets their fair share.
Let’s Talk
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 Centric Health 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.