Introduction
If you’re going through a divorce and either you or your spouse has an account under The Contractors Retirement Plan, created by Ascen workforce, LLC, you’ll need a legal tool called a Qualified Domestic Relations Order—commonly referred to as a QDRO—to divide the retirement benefits. This is especially important when dealing with 401(k) plans, which are known for complex features like vesting schedules, multiple account types (including Roth), and loan balances.
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.
Plan-Specific Details for the The Contractors Retirement Plan
Before filing a QDRO, it’s crucial to understand the basic information about the plan:
- Plan Name: The Contractors Retirement Plan
- Sponsor: Ascen workforce, LLC
- Organization Type: Business Entity
- Industry: General Business
- Plan Type: 401(k)
- Status: Active
- EIN: Unknown (required for QDRO drafting—this must be requested from the plan administrator)
- Plan Number: Unknown (also required and can be obtained through plan documents or the administrator)
- Participants, Assets, and Plan Year: All currently unknown and should be verified during the QDRO process
This information highlights the need for proper due diligence when preparing your QDRO. A mistake or omission—like a missing EIN or incorrect plan name—can delay or invalidate your order.
How QDROs Apply to The Contractors Retirement Plan
Since The Contractors Retirement Plan is a 401(k) plan, it falls under ERISA, the federal law governing retirement plans. A QDRO allows a divorcing spouse (the “alternate payee”) to receive a share of the participant’s plan account without triggering early withdrawal penalties or adverse tax consequences—provided everything is done correctly.
Dividing Employee and Employer Contributions
The QDRO must clearly state whether the alternate payee’s share includes both employee and employer contributions. In 401(k) plans, these are usually accounted for separately. Many spouses don’t realize that employer contributions may have a vesting schedule, which means some of that money might not yet belong to the participant.
Understanding Vesting Rules
Vesting schedules are crucial in dividing The Contractors Retirement Plan. If a participant is not 100% vested in employer contributions, the non-vested portion could be forfeited if the participant leaves the company. Your QDRO should specify how unvested funds are treated. The safest approach is to divide only the vested portion at the time of the divorce unless otherwise negotiated.
Handling Loan Balances
Participant loans can complicate QDROs. Some 401(k) accounts allow loans that reduce the available account balance. A big question in QDROs is whether the loan is subtracted from the balance before or after division. For example:
- If the loan is disregarded, the alternate payee could receive more than expected.
- If the loan is included in the participant’s share, it may create fairness issues.
Your QDRO should clearly outline how outstanding loans under The Contractors Retirement Plan are treated.
Roth vs. Traditional 401(k) Accounts
The Contractors Retirement Plan may include both traditional (pre-tax) and Roth (post-tax) account balances. This difference matters because Roth account distributions are generally tax-free, while traditional funds are taxed on withdrawal. Your QDRO must address whether the alternate payee’s award comes proportionally from each type or solely from one—especially for plans that keep Roth and non-Roth assets in separate subaccounts.
Best Practices for Dividing The Contractors Retirement Plan
To ensure a smooth division of assets in The Contractors Retirement Plan, consider these practical tips based on our years of experience:
- Request plan documents early to confirm plan number, EIN, distribution rules, and account types.
- Determine whether to divide vested balance only or include unvested amounts.
- Check if the plan requires pre-approval of the QDRO draft (some do, most don’t but it’s good practice).
- Make sure your QDRO is explicit about what to do with any outstanding loan balance.
- Include precise instructions regarding Roth and traditional accounts—divide both, or only one?
Failing to address these issues in advance can result in long processing times or rejected orders. To avoid these pitfalls, check out our article on common QDRO mistakes to avoid.
Timing and the QDRO Process
Getting your QDRO done for The Contractors Retirement Plan can take anywhere from a few weeks to several months depending on how prepared you are, how cooperative your ex-spouse is, and how efficient the plan administrator is. We’ve outlined the five key factors that affect QDRO timelines to help you plan accordingly.
Why Work With PeacockQDROs?
Here’s what sets PeacockQDROs apart from other law firms and QDRO preparers:
- We draft, file, submit, and follow up—we don’t stop at preparing the document.
- We’ve worked with plans across nearly every industry, including Business Entity plans like The Contractors Retirement Plan from Ascen workforce, LLC.
- We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
You can learn more about our QDRO services here and contact us directly if you’re ready to get started.
Conclusion
The Contractors Retirement Plan may seem just like any other 401(k), but its unique features—including employer contributions, Roth subaccounts, and potential loan balances—require a tailored QDRO to ensure the divorce settlement is carried out correctly.
Ascen workforce, LLC, as a plan sponsor in the General Business sector, may use plan administrators who are particular about paperwork, so attention to detail matters. If the plan number or EIN is missing, we assist with plan verification directly to ensure compliance.
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 The Contractors 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.