Introduction
Dividing retirement accounts in divorce can be tricky, especially when it involves a 401(k) plan with matching contributions, employer vesting, Roth and traditional components, or retirement loans. If you or your spouse participates in the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan, it’s critical to understand how a Qualified Domestic Relations Order (QDRO) works and what specifics apply to this plan.
At PeacockQDROs, we’ve handled thousands of QDROs from drafting through court approval and final plan distribution. In this article, we explain what divorcing spouses need to know about this particular 401(k) plan and how a properly prepared QDRO can protect valuable retirement savings.
What Is a QDRO?
A Qualified Domestic Relations Order (QDRO) is a legal document used to divide a retirement plan between divorcing parties without triggering penalties or early withdrawal taxes. It directs the plan administrator to assign a portion of the participant’s benefits to a spouse, former spouse, child, or dependent.
Not all retirement plans accept QDROs, but the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan is subject to ERISA and does qualify for QDRO division. Getting it right requires understanding this plan’s specific rules and features.
Plan-Specific Details for the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan
- Plan Name: Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan
- Sponsor: Simonson station stores, Inc.. safe harbor 401(k) plan
- Plan Address Reference: 20250505091244NAL0012349808001, 2024-01-01
- EIN: Unknown (required for QDRO processing; available from plan admin or HR)
- Plan Number: Unknown (must be obtained for QDRO submission)
- Industry: General Business
- Organization Type: Corporation
- Status: Active
Some important data (EIN, plan number, participant counts, and plan years) isn’t publicly available. Our legal team often works directly with the plan sponsor or HR department to confirm those required details when drafting and filing a QDRO for this specific plan.
Key QDRO Considerations for the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan
Employer Contributions and Vesting
Because this is a safe harbor 401(k) plan, the employer is legally required to contribute and those contributions are generally 100% vested immediately. However, it’s important to double-check with the plan administrator to confirm whether all contributions are vested or if some employer funds follow a specific vesting schedule for plan years prior to safe harbor treatment.
QDROs only divide the vested portion of the plan. If the participant isn’t fully vested in their balance—or wasn’t at the time of separation—it could affect how much goes to the alternate payee (usually the ex-spouse).
Employee Contributions
Employee contributions to the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan are always 100% vested and eligible for division through a QDRO. A typical QDRO awards a portion of these contributions, plus any earnings, based on the marital period or a specified dollar amount.
Traditional vs. Roth Accounts
This 401(k) plan may include both traditional (pre-tax) and Roth (after-tax) components. It’s important for the QDRO to clearly state how these are divided. Roth funds are more flexible and may not be taxable to the recipient, but they must be rolled into a Roth account to retain tax benefits.
We’ve seen many QDROs mishandle this issue—causing unexpected tax consequences. That’s why precise drafting is key, especially when dealing with multiple account types.
Loan Balances
If the participant took out a loan from their Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan, that amount may reduce the plan balance available for division. QDRO orders must state whether the division is calculated before or after subtracting loans.
Most plan administrators reduce the allocable amount by subtracting the loan before determining the alternate payee’s share. However, if the parties want to allocate the unpaid loan to one spouse, the QDRO must reflect that clearly.
Common Drafting Mistakes with 401(k) QDROs
Some of the most frequent errors we correct include:
- Failing to distinguish between Roth and non-Roth balances
- Omitting clear direction on loans or forfeited amounts
- Using incorrect or estimated plan names and numbers
- Not clarifying earnings or losses on awarded amounts
- Failing to include cut-off dates that align with the marital estate division
If you’re curious about more pitfalls to avoid, check out our article on common QDRO mistakes.
The QDRO Process for the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan
To divide this plan correctly in a divorce, here’s the standard process:
- Gather Plan Information: Obtain the full, correct plan name, plan number, and plan administrator details.
- Draft the QDRO: Ensure the order clearly applies to the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan and includes all required technical language.
- Submit for Pre-Approval: If the plan allows it, we send the draft to the administrator for review before court filing. This avoids rejection later.
- File with the Court: Once approved, we submit the signed QDRO to the family law court for judicial entry.
- Submit to Plan Administrator: The final QDRO must be sent to the plan for implementation.
Some clients wonder, “How long will this take?” It can vary. For a breakdown of timing factors, review these 5 timing factors.
Why Choose PeacockQDROs?
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. With a plan like the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan, every step counts—especially when tax issues and account types are involved.
Learn more about our process and services on our QDRO services page.
FAQs About Dividing the Simonson Station Stores, Inc.. Safe Harbor 401(k) Plan
Can I divide the account without a QDRO?
No. Even if your divorce judgment says to divide the 401(k), the plan administrator won’t act on it without a court-certified QDRO.
Will I owe taxes if I receive part of this plan?
If the funds are rolled into another qualified retirement plan, you can usually avoid taxes. Direct distributions may be taxable, but you won’t pay the early withdrawal penalty if done under a QDRO.
What if my spouse has a loan out?
The QDRO can assign or exclude loan debt, depending on how the parties agree. But if not addressed correctly, it might reduce the award unintentionally.
Can we split Roth and traditional accounts evenly?
Yes, but it must be written carefully. If mishandled, you could get assigned a Roth amount into a traditional IRA or vice versa—triggering tax issues.
Need Help?
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 Simonson Station Stores, Inc.. Safe Harbor 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.