Dividing a 401(k) in Divorce: Understanding the First National Bank Savings and Investment Plan
When it comes to divorce, retirement assets like 401(k)s are often one of the most valuable—and most complicated—assets to divide. If you or your spouse is a participant in the First National Bank Savings and Investment Plan, a proper Qualified Domestic Relations Order (QDRO) will likely be required to divide the account. But not all retirement plans are created the same, and the details of each plan matter significantly.
At PeacockQDROs, we’ve handled thousands of QDROs from start to finish. That means we don’t just draft the order and hand it off to you—we manage every stage, including preapproval (if the plan requires it), court filing, submission, and communication with the plan administrator. This full-service approach sets us apart from firms that only prepare the document.
In this article, we’ll walk you through what divorcing spouses need to know when dividing the First National Bank Savings and Investment Plan by QDRO, with a focus on 401(k) specific issues like vesting, loan balances, and account types.
Plan-Specific Details for the First National Bank Savings and Investment Plan
- Plan Name: First National Bank Savings and Investment Plan
- Sponsor: Unknown sponsor
- Address: 223 MAIN STREET
- Plan Identifier: 20250708130119NAL0003987857001
- Plan Dates Listed: 2024-01-01 to 2024-12-31
- Effective Date: 1985-04-01
- Plan Type: 401(k)
- Employer Type: Business Entity
- Industry: General Business
- Status: Active
- EIN and Plan Number: Unknown (must be obtained during QDRO preparation)
If you’re in divorce proceedings and this plan is on the table, you’ll need to gather all available plan documentation. Because the EIN and plan number are currently unknown, we recommend requesting a copy of the Summary Plan Description (SPD) and the latest account statement from the participant or plan sponsor. These documents are critical for crafting a valid QDRO.
How 401(k) QDROs Work for the First National Bank Savings and Investment Plan
The First National Bank Savings and Investment Plan is a 401(k), which involves employee salary deferrals, employer matching contributions, and potentially different sub-accounts (such as Roth and traditional). Unlike pensions, there’s no future monthly payment. Instead, the QDRO divides the current balance and allocates it to the non-employee spouse (called the “alternate payee”).
Employee and Employer Contributions
With a 401(k) like the First National Bank Savings and Investment Plan, both the employee and employer typically contribute. But here’s the important part: only vested employer contributions are divisible in a QDRO. If the participant is not fully vested and separates from the company, unvested employer contributions may be forfeited—leaving less for division.
Vesting Schedules and Forfeitures
Many 401(k) plans use a graded vesting schedule, meaning employees earn a percentage of the employer contributions over time (e.g., 20% per year over five years). In QDROs, we can specify that the alternate payee only receives a portion of the vested account as of the date of division—or we can include language to allocate a percentage of future vesting if the participant remains employed. This is a crucial conversation to have in mediation or settlement negotiations.
Loan Balances and Repayment
If the participant has taken out a 401(k) loan, this complicates matters. Should the alternate payee share in the liability? Or should the division be based on the gross account value before the loan was withdrawn? These decisions can have a material effect on the distribution amount.
Here are three common approaches:
- Exclude the loan from the account balance for purposes of the division.
- Include the loan as a distributable asset, meaning the alternate payee receives their share of the funds—even though the money is “borrowed.”
- Specify how repayment will be handled in the QDRO language itself.
Roth vs. Traditional Subaccounts
Some 401(k) plans, including the First National Bank Savings and Investment Plan, may offer both traditional and Roth buckets within the same account. This matters because Roth 401(k) accounts contain after-tax money and follow different distribution rules than traditional (pre-tax) 401(k) savings.
The QDRO should clearly state how each subaccount is to be divided. Failing to do so could result in a tax mishap, especially if the alternate payee receives funds from the wrong tax bucket. Always review the breakdown between Roth and traditional before drafting your order.
Best Practices When Drafting a QDRO for This Plan
The goal of a QDRO is to complete a smooth and accurate transfer of assets in line with the divorce agreement—and to avoid delays from rejection. Here’s what we at PeacockQDROs recommend:
- Get the SPD: The Summary Plan Description is your roadmap to how the plan works. Without it, important details may be missed.
- Request Preapproval (if possible): Some plans allow or require QDRO preapproval before filing with the court, helping avoid future rejections. We handle all preapproval requests as part of our full-service QDRO processing.
- Include Plan-Specific Language: Don’t use a generic QDRO. QDROs must comply with the First National Bank Savings and Investment Plan’s rules, including distribution procedures, restrictions, and types of accounts.
- State the Division Method Clearly: Percentage of the account? Fixed dollar amount? Make sure this is anchored to a specific valuation date (e.g., date of separation or judgment).
- Address Outstanding Loans: Clarify if they are part of or excluded from the divisible balance.
Mistakes like vague instructions or ignoring Roth buckets commonly lead to rejections. We cover these and other problem areas in our guide to Common QDRO Mistakes.
How Long Does a QDRO Take? It Depends.
Several factors impact how long the QDRO process takes. These include plan administrator timelines, whether preapproval is required, and whether the court accepts electronic filing. We cover this in our guide: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Because there’s no known plan number or EIN for the First National Bank Savings and Investment Plan, plan timeframes may vary more than usual. We handle administrative follow-ups, sponsor confirmations, and missing data resolutions as part of our standard process.
Why Choose PeacockQDROs for Your QDRO?
PeacockQDROs isn’t just a QDRO drafting service—we take care of everything from drafting to final plan processing. Our team has handled thousands of QDROs across all 50 states, including many for 401(k) plans in the general business sector like the First National Bank Savings and Investment Plan.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Whether you’re handling a straightforward division or more complex issues like forfeitures, Roth accounts, or loan balances, we know exactly what to watch out for.
If you’re ready to begin, check out our main QDRO page here, or contact us now for help with your specific case.
Final Word
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 First National Bank Savings and Investment 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.