Dividing retirement assets during a divorce can be one of the most complex, emotionally charged parts of the process. When one or both spouses have a 401(k), it usually requires a special court order known as a Qualified Domestic Relations Order, or QDRO. If you or your spouse has an account under the Seres Therapeutics, Inc.. 401(k) Plan, this article will explain what you need to know to divide it correctly—without common and costly mistakes.
What Is a QDRO and Why You Need One
A QDRO is a legal order that allows retirement plan administrators to transfer a portion of a participant’s retirement benefits to an alternate payee, usually the participant’s former spouse, without violating IRS rules or triggering early withdrawal penalties and taxes. Without it, a retirement plan like the Seres Therapeutics, Inc.. 401(k) Plan will not—and legally cannot—divide assets pursuant to divorce.
Plan-Specific Details for the Seres Therapeutics, Inc.. 401(k) Plan
Before drafting a QDRO, it’s critical to understand the specifics of the retirement plan being divided. Here’s what we know about the Seres Therapeutics, Inc.. 401(k) Plan:
- Plan Name: Seres Therapeutics, Inc.. 401(k) Plan
- Sponsor Name: Seres therapeutics, Inc.. 401(k) plan
- Address: 101 CAMBRIDGE PARK DRIVE
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- EIN and Plan Number: Unknown (but required for QDRO submission)
- Industry: General Business
- Organization Type: Corporation
Since the plan is active and tied to a corporation in the general business sector, it follows the typical structure of corporate 401(k) plans with both employee and employer contributions, potential vesting schedules, loan provisions, and Roth/traditional account options.
Breaking Down the QDRO Process for This 401(k)
Start With the Right Information
One of the biggest mistakes we see is QDROs submitted with incorrect or missing information. To divide the Seres Therapeutics, Inc.. 401(k) Plan, you’ll need the correct plan name, sponsor details, and ideally the plan number and EIN. If these are not publicly available, they must be obtained during discovery or directly from the plan administrator. Without them, the QDRO may be rejected.
Determine What Portion Is Being Divided
There are several ways benefits may be divided in a QDRO:
- Dollar amount – A specific figure is awarded to the alternate payee
- Percentage – Often used to divide contributions made during the marriage
- Formula-Based – A shared approach where a marital coverture formula is applied
For a plan like the Seres Therapeutics, Inc.. 401(k) Plan, percentage or coverture-based divisions are common, especially when the participant is still actively employed and the account fluctuates due to ongoing contributions and market growth.
Important QDRO Considerations for the Seres Therapeutics, Inc.. 401(k) Plan
Employee vs. Employer Contributions
Both spouses must understand what’s being divided. The participant in this 401(k) may have only partially vested employer contributions. While employee contributions are always 100% vested, company matches typically follow a vesting schedule. The alternate payee is only entitled to what’s vested at the time of the divorce or the QDRO valuation date.
If your divorce order tries to divide unvested benefits, the QDRO will be rejected or may result in less than expected payouts. Make sure this is clear in the order and verified through the participant’s benefit statements and/or plan documents.
Outstanding Loans
Plan participants can often borrow money from their 401(k), and these loans can reduce the balance significantly. The QDRO should specify whether loans are included or excluded from the division amount. If excluded, the alternate payee gets only the net balance after subtracting the loan. If included, the division is based on the full value as though the loan didn’t exist—but keep in mind the original account holder still needs to repay the loan.
Roth vs. Traditional 401(k) Accounts
The Seres Therapeutics, Inc.. 401(k) Plan may include both Roth and traditional 401(k) subaccounts. Roth subaccounts grow tax-free, while traditional accounts are taxable upon distribution. A good QDRO ensures the account types are divided in proportion to the original holdings so that both parties receive fair and tax-consistent portions. Ignoring this distinction creates confusion and unexpected tax implications for the alternate payee later.
Pre-Approval (When Available) Makes a Big Difference
Although some retirement plans allow a draft QDRO to be submitted for pre-approval before being signed by the court, not all companies do. If the administrator of the Seres Therapeutics, Inc.. 401(k) Plan offers this option, we recommend taking advantage of it to reduce delays and corrections that may otherwise occur after the court signs the order.
Working With PeacockQDROs Means Simplicity and Peace of Mind
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 team understands not only the drafting process but what your QDRO must contain to pass approval for corporate plans like the Seres Therapeutics, Inc.. 401(k) Plan.
Want to avoid common errors? See our list of common QDRO mistakes.
Wondering how long the process takes? Review this guide on the QDRO timeline factors.
Your Next Steps
Dividing the Seres Therapeutics, Inc.. 401(k) Plan legally and fairly requires a QDRO that accounts for its corporate plan structure, employer-employee contributions, loan issues, and Roth/traditional account holdings. Doing it wrong can cost both spouses time and money.
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 Seres Therapeutics, Inc.. 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.