Dividing a 401(k) Like the Summit Sealants Retirement Plan in Divorce
Dividing retirement assets during a divorce isn’t easy, especially when it comes to 401(k) plans with employer contributions, vesting schedules, account types, and possible loans. The Summit Sealants Retirement Plan, sponsored by Summit sealants & restoration, Inc., is an active 401(k) retirement plan tied to a general business corporation. If you or your spouse has benefits in this specific plan, the only way to legally split those funds as part of a divorce is through a court-approved Qualified Domestic Relations Order, or 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 available), court filing, and final submission to the plan. That’s what sets us apart from firms that only prepare the document and hand it off to you.
Plan-Specific Details for the Summit Sealants Retirement Plan
Before getting started, here’s what we know about the Summit Sealants Retirement Plan. Keep in mind your divorce attorney or QDRO professional will need specific details to properly prepare an order.
- Plan Name: Summit Sealants Retirement Plan
- Sponsor: Summit sealants & restoration, Inc.
- Plan Address: 20250609111353NAL0014147233001, effective 2024-01-01
- Employer Identification Number (EIN): Unknown (you will need this for final submission)
- Plan Number: Unknown (required for plan administrator tracking – your HR department can provide this)
- Plan Type: 401(k)
- Industry: General Business
- Organization Type: Corporation
- Plan Status: Active
- Plan Participants: Unknown
- Plan Year: Unknown to Unknown
- Assets: Unknown
Many of these unknowns are common at the start of the QDRO process. A QDRO professional can contact the plan administrator or employer to get what’s needed.
What Makes 401(k) QDROs Like This One Tricky?
The Summit Sealants Retirement Plan is a 401(k), which means the participant may have:
- Traditional (pre-tax) and Roth (after-tax) account balances
- Employer and employee contributions
- An active loan balance
- Unvested employer contributions — possibly subject to forfeiture
Each of these layers must be accounted for properly in the QDRO to ensure the alternate payee (usually the ex-spouse) receives the right share of the account.
Dividing Contributions: Employee vs. Employer
The QDRO can specify a division of the total account or limit it to certain types of funds. One common approach is splitting the marital portion—which may include both employee (participant) contributions and vested employer contributions—50/50 or at a different agreed percentage.
Unvested portions of employer contributions generally cannot be awarded. For instance, if the spouse is dividing the account two years into a five-year vesting schedule, only the vested portion is available to divide.
How to Handle a Vesting Schedule
Most employer contributions in 401(k) plans like the Summit Sealants Retirement Plan are subject to a gradual vesting schedule. The QDRO should spell out whether only vested funds at the time of divorce (or another set date) are covered. A well-written QDRO will clarify these dates and avoid future disputes.
Watch Out for Outstanding Loan Balances
If the participant has borrowed money from the Summit Sealants Retirement Plan, those loan balances can significantly affect the account’s current value. QDROs must address this issue in one of two ways:
- Exclude the loan from the divisible balance (e.g., divide only the net balance)
- Include the loan balance, treating it as if it’s still part of the account
Most QDROs exclude loans unless the parties agree otherwise. However, loans that are not repaid may eventually count as taxable income to the participant.
Traditional vs. Roth Account Splits
The Summit Sealants Retirement Plan may hold both traditional and Roth 401(k) dollars. This matters because traditional funds are taxed when withdrawn, while Roth dollars generally are not—assuming the withdrawal rules are met.
The QDRO should specifically state whether the alternate payee receives a proportional share of both types, or only one. If not addressed clearly, the plan administrator might apply their own default. That can lead to tax surprises down the road.
Key QDRO Drafting Considerations for This Plan
Some practical tips we always include in Summit Sealants Retirement Plan QDROs at PeacockQDROs:
- Make sure the division date is clearly defined—often the date of separation, divorce filing, or order entry
- Clarify who pays any loan-related reductions if loan balances are included
- Address both traditional and Roth funds clearly—especially if different percentages apply
- Specify survivorship rights for alternate payees (important if the participant dies before the distribution)
- Request direct rollovers to an IRA to avoid unnecessary taxation
Finalizing the QDRO for a 401(k) Like the Summit Sealants Retirement Plan
The QDRO process involves several stages. Here’s what to expect when working with PeacockQDROs:
- We gather details from you and the plan (like EIN, Plan Number, and account statements)
- We draft the QDRO language customized to the Summit Sealants Retirement Plan
- We submit it for preapproval, if the plan accepts this step (some plans do, some don’t)
- Once approved, we file the QDRO with the appropriate court
- We return the certified QDRO back to the plan for implementation and follow up on processing
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Many people assume a QDRO is just a form—you don’t want to make that mistake. It only takes one misspelled sentence to delay or block the distribution of tens of thousands in retirement benefits.
Avoiding Common QDRO Mistakes for the Summit Sealants Retirement Plan
Mistakes in drafting or court filing can render a QDRO unenforceable. Read more about Common QDRO Mistakes that we help our clients avoid every day. Another helpful article is our breakdown of how long QDROs take.
Every step matters—from getting the EIN and plan number to pinpointing the account types and values at the right time. Don’t risk your share of a retirement account on DIY documents or generic templates.
We’ll Handle the Hard Part—You Focus on Moving Forward
If you need to divide retirement benefits in a divorce involving the Summit Sealants Retirement Plan, let us take care of the QDRO end-to-end. Our team will ensure the language works for this 401(k) plan, matches the divorce agreement, and addresses all technical issues like loan offsets, Roth funds, and vesting schedules.
Visit our QDRO resources page to learn more or contact us now to get started with your QDRO for the Summit Sealants Retirement Plan.
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 Summit Sealants Retirement 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.