Introduction
Dividing retirement accounts can be one of the most complicated parts of a divorce. If you or your spouse has an account under the South Trust Bank 401(k) and Profit Sharing Plan, you’ll need a Qualified Domestic Relations Order (QDRO) to ensure benefits are divided legally and accurately. At PeacockQDROs, we’ve completed thousands of QDROs from start to finish — not just the drafting, but also preapproval (if required), court filing, plan submission, and follow-up with the administrator. That’s what truly sets us apart.
In this article, we’ll explain how the South Trust Bank 401(k) and Profit Sharing Plan works in the context of divorce, what makes dividing a 401(k) unique, and the key points you must consider when drafting your QDRO.
Plan-Specific Details for the South Trust Bank 401(k) and Profit Sharing Plan
Before we get into QDRO specifics, it’s essential to understand the structure of this particular plan. Here’s what we know:
- Plan Name: South Trust Bank 401(k) and Profit Sharing Plan
- Sponsor: Unknown sponsor
- Address: 601 Guadalupe Street
- Plan Type: 401(k) with Profit Sharing
- Organization Type: Business Entity
- Industry: General Business
- Effective Date: 1985-01-01
- Status: Active
- Plan Year: 2024-01-01 to 2024-12-31
- EIN and Plan Number: Required for QDRO submission, but currently unknown — these must be confirmed before proceeding with your order
Because this is a 401(k) and Profit Sharing Plan sponsored by a General Business operating as a Business Entity, standard QDRO practices apply—but with some important caveats. Let’s walk through them.
Why a QDRO is Required: Legal and Tax Compliance
Under IRS and ERISA rules, a 401(k) plan like the South Trust Bank 401(k) and Profit Sharing Plan can’t distribute funds to anyone except the plan participant unless there’s a QDRO in place. This court order directs the plan to pay a portion of the retirement account to the non-employee spouse (called the alternate payee). Without a QDRO, distributions outside of retirement age may trigger taxes and penalties.
A properly drafted QDRO is the only way for the alternate payee to receive their share tax-free (if rolled over into another retirement plan) or to control how and when the funds are withdrawn.
Key Issues When Dividing the South Trust Bank 401(k) and Profit Sharing Plan
1. Employee and Employer Contributions
Most 401(k) plans are made up of two parts: contributions made by the employee (from salary deferrals), and contributions made by the employer. These two sources are usually tracked separately. Your QDRO should clearly specify whether the alternate payee is receiving a share of:
- Just the employee contributions (usually 100% vested)
- Both employee and vested employer contributions
- Employer contributions subject to vesting rules (more on that next)
2. Vesting Schedules and Forfeited Amounts
Employer contributions to the South Trust Bank 401(k) and Profit Sharing Plan may be subject to a vesting schedule. That means the employee earns rights to the employer’s contributions over time. If the employee hasn’t worked long enough to become fully vested, part of the employer contributions may be forfeited if they leave the company — or in this case, there may be nothing to divide with the alternate payee.
Your QDRO must be crystal clear about:
- Whether it includes only vested employer contributions
- Whether it includes future vesting that may occur after the divorce
- How to handle any forfeited amounts
3. Loans and Outstanding Balances
If the participant has an outstanding loan against their South Trust Bank 401(k) and Profit Sharing Plan, the QDRO should state whether that loan is considered part of the account balance being divided. There are two main approaches:
- Include loan balance: The alternate payee receives a share of the account as if the loan doesn’t exist (higher number on paper, but funds aren’t all actually available).
- Exclude loan balance: The loan is subtracted before calculating the alternate payee’s share (more accurate to what’s really available).
At PeacockQDROs, we typically recommend excluding the loan to avoid confusion or delays in processing.
4. Roth vs. Traditional 401(k) Accounts
Many modern 401(k) plans offer both traditional (pre-tax) and Roth (after-tax) contributions. These must be addressed separately in the QDRO because they have different tax treatment.
If the South Trust Bank 401(k) and Profit Sharing Plan includes a Roth subaccount, you’ll want your QDRO to state clearly what is being transferred:
- Traditional (pre-tax) portion
- Roth (after-tax) portion
- Or both, in a proportionate split
This ensures tax integrity and prevents processing delays.
Timing and Submission Requirements
Once the QDRO is signed by the judge, it must be sent to the plan administrator for the South Trust Bank 401(k) and Profit Sharing Plan. Since the administrator’s identity is tied to the Unknown sponsor, it’s critical to track that down before submission can happen. You’ll also need essential plan documentation like the Summary Plan Description (SPD), plan number, and employer EIN.
We cover common pitfalls in timing and filing on our page about common QDRO mistakes and our breakdown of the 5 factors that determine QDRO timelines.
Next Steps to Protect Your Share
Gather the Right Plan Info
Even though details like the Plan Number and EIN are currently listed as “Unknown,” they’re still required to submit a QDRO to the South Trust Bank 401(k) and Profit Sharing Plan. You or your attorney must request this information from the plan administrator or employer HR department.
Work with a QDRO Specialist
Generic forms or template QDROs often won’t meet the requirements for a plan like this. Carefully crafting language around loans, account types, and vesting ensures there are no delays or denials. At PeacockQDROs, we handle this process from A to Z so our clients don’t have to guess.
Why Choose PeacockQDROs?
At PeacockQDROs, we’ve processed thousands of QDROs across all types of retirement plans, including the South Trust Bank 401(k) and Profit Sharing Plan. We don’t just hand you a document and walk away. Our process includes drafting, preapproval (if needed), court filing, follow-up with plan administrators, and final confirmation of asset division. That full-circle support minimizes errors and keeps things moving.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. See everything we offer on our QDRO services page.
Conclusion
If you’re going through a divorce and either you or your spouse has an account with the South Trust Bank 401(k) and Profit Sharing Plan, don’t wait to start the QDRO process. Getting it right will save you time, money, and stress — and ensure your retirement assets are protected.
State-Specific Call to Action
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 South Trust Bank 401(k) and Profit Sharing 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.