Introduction
Dividing retirement benefits in divorce often requires more than just a line in your settlement. If your or your spouse’s retirement account is with the Rehabvisions 401(k) Plan, sponsored by National therapeutic associates, Inc.., you’ll need a Qualified Domestic Relations Order (QDRO) to properly divide those funds. Without one, the plan administrator may be legally barred from moving any portion of the account to the former spouse.
In this article, we’ll walk you through how dividing the Rehabvisions 401(k) Plan works, what makes this kind of plan tricky, and what you can expect during the QDRO process.
What Is a QDRO and Why You Need One
A QDRO is a domestic relations order, signed by a judge, that directs a retirement plan to pay a portion of one spouse’s account to the other spouse after divorce. It’s required by federal law to split qualified retirement plans like 401(k)s, and without it, even a well-written divorce decree isn’t enough.
The QDRO tells the Rehabvisions 401(k) Plan administrator:
- Who the alternate payee (usually the former spouse) is
- Which percentage or flat amount of the benefits they are to receive
- How to handle investment gains or losses on the divided portion
- Whether or not survivor benefits apply
Plan-Specific Details for the Rehabvisions 401(k) Plan
Here are the known facts for this specific plan, which will be vital when preparing a QDRO, even if some information like the EIN or plan number must be obtained during the QDRO process:
- Plan Name: Rehabvisions 401(k) Plan
- Sponsor: National therapeutic associates, Inc..
- Address: 11623 ARBOR STREET
- Industry: General Business
- Organization Type: Corporation
- Plan Type: 401(k)
- Status: Active
- Participants, Plan Year, EIN, Plan Number: Unknown (must be confirmed with plan administrator)
- Effective Date: Unknown
This is a General Business plan offered by a Corporation, and like many 401(k) plans, it may include a mix of employer-matched contributions, possibly on a vesting schedule, and employee pre-tax and Roth contributions. All of these details need to be addressed in the QDRO.
Breaking Down the Components: What to Look For When Dividing a 401(k)
Employee vs. Employer Contributions
Most people are surprised to learn that not all of the 401(k) funds might be available to split. Employee contributions (the amounts the participant put in from their paycheck) are always 100% vested. Employer contributions (the company match) may be subject to a vesting schedule.
If only a portion of the employer contributions are vested at the time of divorce, only that vested amount can be divided in a QDRO. Unvested amounts go back to the plan if the participant leaves the job before becoming fully vested.
How Vesting Schedules Can Affect the Distribution
401(k) plans often follow a vesting schedule—either graded (e.g., 20% vested per year over five years) or cliff (e.g., 100% vested after three years). The Rehabvisions 401(k) Plan could use either, so it’s important to ask the plan directly for a vesting statement as of the date of separation or divorce finalization.
Also clarify in your QDRO whether you want to divide only vested funds or if you want to include post-divorce vesting rights, which some plans will allow but others will not.
Loan Balances and Repayment Responsibility
If the participant has taken out a loan from the Rehabvisions 401(k) Plan, the loan is not transferrable to the alternate payee. Instead, the QDRO will need to specify whether the loan balance is included in or excluded from the account balance being divided.
For example, if the account has $70,000 in assets but a $10,000 loan, the net balance is $60,000. Your QDRO should clearly state whether division is based on the gross ($70K) or net ($60K) balance. We help our clients identify and clarify this critical detail early in the process.
Traditional vs. Roth Accounts
The Rehabvisions 401(k) Plan may include both traditional (pre-tax) and Roth (after-tax) components. These are taxed differently upon withdrawal, and should not be mixed in the QDRO.
Make sure your order instructs the plan to divide each source proportionally or specify how each account type should be split. Improper drafting here could lead to unexpected tax consequences or administrative rejection.
Steps to Divide the Rehabvisions 401(k) Plan With a QDRO
1. Request Plan Documents
First, request the summary plan description (SPD) and QDRO procedures from the plan administrator. These outline critical rules for dividing the Rehabvisions 401(k) Plan.
2. Draft a Compliant QDRO
This is where most do-it-yourselfers get stuck. The QDRO must match what the plan will actually accept. That means identifying:
- Plan name exactly as it appears: Rehabvisions 401(k) Plan
- Sponsor name: National therapeutic associates, Inc..
- Correct legal language based on plan type (401(k))
- How investment gains/losses are handled
- Whether only vested funds are being divided
- Loan treatment and account source specifics
3. Submit for Preapproval (If Available)
Some administrators offer preapproval services so the QDRO can be reviewed before filing it with the court. This saves time later. Not all plans allow this, but we can help determine that for you.
4. Court Filing and Final Entry
Once pre-approved, have the QDRO signed by a judge. Submit a certified copy to the administrator for processing.
5. Follow-Up and Disbursement
Final step: ensure the division is carried out properly. We confirm processing with the plan and advocate for you if something is delayed or denied.
Common QDRO Errors for 401(k) Plans
For plans like the Rehabvisions 401(k) Plan, some of the most common QDRO mistakes we see include:
- Forgetting to address employer vesting schedules
- Failing to handle 401(k) loans correctly
- Not separately accounting for Roth vs. traditional assets
- Using the wrong plan name or sponsor details
For a quick breakdown of QDRO pitfalls, check out our guide on common QDRO mistakes.
Why Choose PeacockQDROs to Handle Your Rehabvisions 401(k) QDRO
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. We know what plans like the Rehabvisions 401(k) Plan require, and we get it done right—the first time. Learn about our full QDRO process here: how long it takes to get a QDRO done.
Final Thoughts
Dividing a 401(k) like the Rehabvisions 401(k) Plan is more complex than it might seem. Plan-specific rules, vesting schedules, tax treatment, and loan issues all demand careful attention. A properly prepared QDRO ensures your interests are protected—and processed without unnecessary delays.
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 Rehabvisions 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.