Dividing the Moda LLC Incentive Savings Plan and Trust Ii in Divorce
If you or your spouse has a 401(k) through the Moda LLC Incentive Savings Plan and Trust Ii, you’ll likely need a Qualified Domestic Relations Order—commonly known as a QDRO—to divide those retirement assets during divorce. While QDROs might seem like just another piece of legal paperwork, getting it done right is crucial. Mistakes during the drafting or processing of the QDRO can cost you time, money, and your fair share of retirement savings.
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.
Plan-Specific Details for the Moda LLC Incentive Savings Plan and Trust Ii
Here’s the key information you’ll need when preparing a QDRO for the Moda LLC Incentive Savings Plan and Trust Ii:
- Plan Name: Moda LLC Incentive Savings Plan and Trust Ii
- Sponsor: Moda LLC incentive savings plan and trust ii
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Corporation
- Status: Active
- Plan Year: Unknown to Unknown
- Plan Effective Date: Unknown
- Number of Participants: Unknown
- Plan Address Reference: 20250717093934NAL0000089714002, 2024-01-01
- Employer Identification Number (EIN): Required but currently unknown to the public record
- Plan Number: Required but currently unknown to the public record
Although the EIN and Plan Number are not publicly listed, they must be included on the QDRO for processing. These identifiers can typically be obtained directly from the Plan Administrator or your spouse’s HR department.
How QDROs Work for 401(k) Plans Like Moda LLC Incentive Savings Plan and Trust Ii
The Moda LLC Incentive Savings Plan and Trust Ii is a 401(k) plan, which means it can include employee contributions, employer matches, loan options, and potentially both traditional and Roth account balances. All of these affect how the plan should be divided in divorce.
1. Employee vs. Employer Contributions
Most QDROs award the alternate payee (the non-employee spouse) a percentage or fixed dollar amount of the account balance as of a specific date. But it’s critical to break that down between:
- Employee Contributions: These are always 100% vested and available for division.
- Employer Contributions: These are subject to vesting schedules. If your spouse isn’t 100% vested, some employer contributions might not be included in the divisible balance.
Failing to distinguish between vested and unvested funds is one of the biggest QDRO mistakes we see. Read more about this on our Common QDRO Mistakes page.
2. Vesting Schedules and Forfeiture
Many 401(k)s, especially in corporate environments like Moda LLC incentive savings plan and trust ii, impose vesting schedules that can span years. If the employee hasn’t met the full vesting timeline, a portion of those employer contributions may ultimately be forfeited.
A well-drafted QDRO should specify whether it applies only to vested amounts or includes retroactive adjustments if those funds vest later. We discuss how such nuances affect timelines in our article on QDRO timelines.
3. Handling 401(k) Loans
If your spouse has taken out a loan from their 401(k), this will impact the amount available for division. Here are your options:
- You can divide the plan balance net of outstanding loans (most common)
- You can divide the balance as if no loan existed, placing sole repayment responsibility on the account holder
Including loan treatment in the QDRO is essential. Left out, it opens the door for disputes and delays during processing.
4. Roth vs. Traditional Account Balances
The Moda LLC Incentive Savings Plan and Trust Ii may contain both traditional (pre-tax) and Roth (after-tax) sub-accounts. Dividing these requires careful attention because:
- Traditional 401(k): Disbursements are taxed unless rolled over into another qualified plan.
- Roth 401(k): Withdrawals may be tax-free under certain conditions but must be transferred to another Roth account.
Your QDRO should specify whether the division applies proportionally across account types or if it assigns specific sub-account values. Make that clear to avoid complications when the plan administrator initiates the split.
What Makes a Good QDRO for the Moda LLC Incentive Savings Plan and Trust Ii?
A good QDRO isn’t just about filling in blanks; it’s about understanding the details that matter to your long-term financial security. For this specific corporate 401(k) plan, your QDRO should:
- Clearly list the plan name as Moda LLC Incentive Savings Plan and Trust Ii
- Reference the correct Plan Number and EIN (obtainable from records or HR)
- Address employee vs. employer contributions and include vesting terms
- Specify how to handle any outstanding 401(k) loans
- Delineate Roth and Traditional account division
- Include precise award formula and effective date
Common Pitfalls to Avoid
Here are some common QDRO mistakes we’ve seen when dividing plans like the Moda LLC Incentive Savings Plan and Trust Ii:
- Using generic division language without referencing the specific account types
- Failing to address loan balances, leading to disputes
- Omitting the award date, which determines market gains/losses
- Lack of clarity on whether post-divorce employer contributions are shared
- Submitting an unapproved draft that gets rejected by the plan administrator
These types of mistakes can delay processing by months or even result in financial loss. That’s why at PeacockQDROs, we handle all stages—from drafting to submitting—until your QDRO is fully implemented.
Why Choose PeacockQDROs?
QDROs are our sole focus, and we take pride in the accuracy of our work. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Whether you’re dividing a standard corporate 401(k) like the Moda LLC Incentive Savings Plan and Trust Ii, or a more complex pension or government plan, we ensure your QDRO is compliant, complete, and ready for processing.
If you’re looking for guidance beyond just document preparation, you’re in the right place. We take care of:
- Initial QDRO drafting with plan-specific language
- Working with the plan administrator for pre-approval (if required)
- Filing the order in court
- Sending the signed QDRO to the plan for processing
- Following up to make sure the transfer really happens
See more about how our QDRO service works here: PeacockQDROs Services
Final Thoughts
Handling the QDRO yourself or hiring a general attorney can often lead to delays or mistakes. Retirement assets are too important to leave to chance—especially in complex 401(k) arrangements offered by corporate employers like Moda LLC incentive savings plan and trust ii.
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 Moda LLC Incentive Savings Plan and Trust Ii, 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.