Introduction
Dividing retirement benefits is one of the most important—and often the most misunderstood—aspects of a divorce. If your spouse worked at Infinera corporation and participated in the Infinera 401(k) Plan, you may be entitled to a portion of that account. But it’s not as simple as cutting the balance in half. You’ll need a Qualified Domestic Relations Order, or QDRO, to legally divide the retirement account without triggering taxes or penalties.
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.
What Is a QDRO?
A Qualified Domestic Relations Order (QDRO) is a legal order required to divide certain retirement accounts—like the Infinera 401(k) Plan—without penalties or adverse tax consequences. A QDRO instructs the plan administrator to assign a portion of the retirement account to an alternate payee, typically the non-employee spouse, in accordance with the divorce judgment.
Plan-Specific Details for the Infinera 401(k) Plan
To prepare a QDRO correctly, it’s critical to understand the specific retirement plan you’re addressing. Here is what we know about the Infinera 401(k) Plan:
- Plan Name: Infinera 401(k) Plan
- Sponsor: Infinera corporation
- Address: 6373 San Ignacio Avenue
- Plan Number: Unknown (must be included in QDRO once identified)
- EIN: Unknown (must be obtained during drafting for accurate processing)
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Effective Dates: 2001 to present
This plan is a standard 401(k), which means it may include a mix of employee contributions, employer matching contributions, pre-tax (traditional) contributions, and post-tax (Roth) contributions. Each of these types needs to be treated properly under a QDRO.
Determining What’s Divisible
Employee and Employer Contributions
In most 401(k) plans, balances are made up of the employee’s salary deferrals and any employer match or profit-sharing. While the participant is always 100% vested in their own contributions, employer contributions may be subject to a vesting schedule. This means some of the employer’s contributions may not yet “belong” to the employee—and therefore not divisible in divorce.
When preparing a QDRO for the Infinera 401(k) Plan, the plan administrator will look at how much of the account is vested as of the key valuation date (often the date of separation or divorce). It’s important to draft the QDRO to reflect only the vested portion, unless otherwise agreed upon in the divorce judgment.
Unvested and Forfeited Amounts
If the participant is not fully vested in employer contributions, some of those amounts may be forfeited if they leave the company. In drafting a QDRO, we often include protective language that ensures the alternate payee receives a percentage of the participant’s total account—adjusted for forfeitures if necessary. Clarity here prevents future disputes down the line.
Loan Balances and Repayment Obligations
If there is a loan on the Infinera 401(k) Plan, it must be addressed in the QDRO. Common options include:
- Dividing the account balance net of the loan
- Assigning the loan as part of the participant’s share
- Dedicating repayment responsibility to the participant with express language in the QDRO
This is a critical detail that must be handled correctly. Otherwise, an alternate payee may receive less than intended or get stuck with an unexpected share of loan repayment.
Roth vs. Traditional Contributions
The Infinera 401(k) Plan may include both traditional pre-tax contributions and Roth after-tax contributions. These account types are treated differently for tax purposes. A proper QDRO will separately identify Roth and traditional balances and assign percentages appropriately. If your share is transferred to a Roth IRA, it needs to be outlined clearly to avoid IRS tax issues.
Best Practices for Dividing the Infinera 401(k) Plan
Use Precise Language
A vague division like “50% of the account” can cause confusion. Does that mean 50% of the total balance? As of what date? Including or excluding loans? At PeacockQDROs, we draft QDROs with sharp language tailored to your divorce judgment—and we use plan-specific terms to make enforcement easier for the administrator.
Keep the Taxes in Mind
Any amount awarded under a QDRO placed into the alternate payee’s IRA maintains its tax-deferred status. If the alternate payee chooses to receive a cash distribution, ordinary income taxes apply, but without the 10% early withdrawal penalty. Roth portions are generally received tax-free if rolled into a Roth IRA.
Consider Market Fluctuations
401(k) accounts rise and fall with the market. The QDRO can specify whether investment gains and losses after the division date should be included. Failing to address this can cause disproportionately unfair results if there’s a delay between divorce and account division.
Preapproval If Available
Some plans allow preapproval of QDROs before court filing. If the Infinera 401(k) Plan offers this, we always recommend using it. It dramatically reduces the risk that the QDRO will be rejected after filing—saving you significant delays and cost.
Timing and Common Mistakes
One of the biggest mistakes we see? Waiting too long. If too much time goes by, the participant may retire, roll over their balance, or lose records necessary for accurate division. Avoid these errors by reviewing these tips: Common QDRO Mistakes.
Curious how long the QDRO process will take? You’ll want to consider these 5 key timing factors.
Next Steps with PeacockQDROs
QDROs are technical legal documents. You don’t want to guess your way through one—especially when retirement accounts make up a large portion of your marital assets. At PeacockQDROs, we don’t leave clients hanging. We manage the full QDRO lifecycle—from draft to court to plan administrator—to ensure your division gets done right.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. If your divorce involves the Infinera 401(k) Plan, we’re here to make sure you get your fair share with zero surprises and full legal compliance.
Learn more about our full-service approach to retirement division here: https://www.peacockesq.com/qdros/
Final Thought
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 Infinera 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.