Introduction
Dividing retirement plans during divorce can be one of the most complex steps in the property division process—especially when the plan in question is a 401(k). If your spouse is a participant in the Fre/ace 401(k) Plan, sponsored by Freight runners express, Inc.., you need to understand your rights and the steps involved in obtaining a valid Qualified Domestic Relations Order (QDRO). In this article, we’ll walk you through what you need to know to make sure your share of this benefit is protected.
Plan-Specific Details for the Fre/ace 401(k) Plan
Here’s what we currently know about the Fre/ace 401(k) Plan:
- Plan Name: Fre/ace 401(k) Plan
- Sponsor: Freight runners express, Inc..
- Address: 20250604135156NAL0011295921001, 2024-01-01
- EIN: Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Corporation
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
Even with some missing data, you can still pursue a QDRO. Proof of the plan sponsor and available records can help identify and retrieve the needed plan information. For 401(k) plans like this one, understanding specific features—such as account types and vesting schedules—is essential for accurate division.
What’s a QDRO and Why Is It Necessary?
A QDRO is a court order that allows for the legal transfer of retirement plan benefits from one spouse to another after divorce—without triggering taxes or early withdrawal penalties. No matter what your divorce judgment says, if you’re trying to divide benefits in a qualified plan like the Fre/ace 401(k) Plan, you must have a QDRO that is accepted by the plan administrator.
Division of Contributions in the Fre/ace 401(k) Plan
401(k) plans can hold both employee and employer contributions. Here’s what to keep in mind when dividing this specific plan:
Employee Contributions
These are fully vested and always the participant spouse’s property. If they were made during the marriage, they’re typically considered community or marital property and are subject to division.
Employer Contributions and Vesting
This is where things get more complicated. Many employer contributions are subject to a vesting schedule—meaning the participant must work for the company for a set number of years before those funds become theirs. If your spouse hasn’t met that requirement, you may not be entitled to a portion of the unvested funds.
However, it’s common practice to draft a QDRO that includes a proportional share of employer contributions that are currently vested and possibly an interest in future vesting, depending on your attorney’s strategy and the court’s approach in your jurisdiction.
Handling Loan Balances in the Plan
If your spouse took out a loan against the Fre/ace 401(k) Plan, that balance will affect the calculation of your share. It’s important to understand a few things:
- Loan balances reduce the account’s value
- Some QDROs divide the account before subtracting the loan balance, while others deduct the loan first
- If the participant defaults on the loan, it may be treated as a distribution and taxed accordingly
Make sure the QDRO clearly addresses the loan treatment—whether it reduces the assignable amount or not. A missed detail here can leave one party shortchanged.
Roth vs. Traditional 401(k) Accounts
The Fre/ace 401(k) Plan may include both traditional and Roth sub-accounts. They are very different in tax treatment:
- Traditional 401(k): Contributions are made pre-tax; distributions are taxed later
- Roth 401(k): Contributions are made with after-tax money; qualified distributions are tax-free
This distinction matters a lot in a QDRO. Mixing the two in one transfer can result in unexpected taxes or processing errors. The QDRO should specify how each sub-account is divided. Ideally, the alternate payee receives their share in-kind, keeping the Roth portion Roth and the traditional portion traditional.
Failing to separate them properly is one of the most common mistakes made in QDROs. Don’t let that happen in your case.
Submission and Approval of the QDRO
Once the QDRO is drafted, it needs to follow several steps:
- Review by the parties’ attorneys
- Preapproval by the Fre/ace 401(k) Plan administrator (if available)
- Filing and court entry of the QDRO
- Submission to the plan administrator for final qualification
Plans sponsored by corporations like Freight runners express, Inc.. may have their own QDRO guidelines. It’s vital to tailor your order to the plan’s requirements or risk rejection and delay.
Timing also matters. Learn what factors can delay your QDRO here.
Common Issues Specific to 401(k) QDROs
401(k) plans bring their own set of problems when it comes to divorce and QDROs:
- Incorrectly calculating marital portions due to ignored dates
- Treating loan balances inconsistently
- Failing to address multiple sub-accounts (Roth vs. traditional)
- Missing survivor benefit options (not typically relevant for 401(k)s, but occasionally improperly inserted)
That’s why working with a QDRO specialist familiar with 401(k) structures—especially for business plans like the Fre/ace 401(k) Plan—is critical.
How PeacockQDROs Can Help
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.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Our clients trust us to get it done correctly and efficiently—because they know we care about their outcomes.
- Learn more about our full-service QDRO process: QDRO Services
- See common mistakes to avoid: QDRO Mistakes
- Contact us directly: Contact PeacockQDROs
Final Thoughts
Whether you’re the participant or alternate payee, dividing the Fre/ace 401(k) Plan requires a clear, carefully worded QDRO that anticipates the plan’s features—from vesting to loans to Roth accounts. Don’t assume generic orders will work here—consulting with QDRO professionals is the key to guarding your rights.
Call to Action
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 Fre/ace 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.