Introduction
Divorce is difficult as it is, but things get especially complicated when it comes to dividing retirement accounts like the Verdun 401(k) Retirement Plan. If you or your spouse have an interest in this specific plan, you’ll need a Qualified Domestic Relations Order, commonly known as a QDRO, to divide the account legally and without triggering taxes or penalties.
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.
This article will walk you through the key issues you need to understand when dividing retirement assets under the Verdun 401(k) Retirement Plan. From vesting schedules and loan balances to Roth accounts and employer contributions, we’ll show you what matters when preparing your QDRO.
Plan-Specific Details for the Verdun 401(k) Retirement Plan
Before you begin the QDRO process, it’s essential to understand the specific context of the retirement plan involved. Here’s what we know so far about the Verdun 401(k) Retirement Plan:
- Plan Name: Verdun 401(k) Retirement Plan
- Sponsor: Verdun management Co. LLC
- Plan Address: 945 Bunker Hill Road, Suite 1300
- Plan Duration: 2024-01-01 through 2024-12-31
- Plan Type: 401(k)
- Industry: General Business
- Plan Sponsor Organization Type: Business Entity
- Status: Active
- Plan Start Date: June 1, 2012
- EIN and Plan Number: Unknown — These will be needed later in the QDRO process
The fact that the Verdun 401(k) Retirement Plan is active and has been operating for over a decade suggests there’s substantial retirement wealth potentially at stake. However, missing information like the EIN and plan number will need to be gathered, often from the plan participant’s HR department or financial documents, before the QDRO process can be completed.
What Is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order (QDRO) is a legal order that gives an alternate payee—usually the former spouse—the right to receive a portion of the benefits in a retirement plan, like the Verdun 401(k) Retirement Plan. Without a QDRO, the plan administrator cannot legally make payments to anyone other than the account-holding participant.
Key advantages of using a QDRO include:
- Tax-deferred transfer of retirement funds to the alternate payee
- Protection from early withdrawal penalties if the funds are rolled over correctly
- A clear legal framework for allocating complex retirement assets
Dividing Employee and Employer Contributions
The Verdun 401(k) Retirement Plan likely includes both employee deferrals (amounts the employee contributed from their paycheck) and employer contributions (company matches or profit-sharing). One or both types may be subject to division in divorce, depending on when the contributions were made and the couple’s agreement or court ruling.
In most cases, the QDRO will allocate a percentage or fixed portion of the account accrued during the marriage. It is important to clarify whether the allocation includes:
- Employee salary deferrals only
- Employer matching or discretionary contributions
- Both, and whether gains/losses apply
Understanding Vesting and Forfeitures
Employer contributions to a 401(k) are often subject to a vesting schedule. This means the employer funds aren’t fully owned by the employee until they’ve worked a certain number of years at Verdun management Co. LLC. If the employee hasn’t met these requirements at the time of divorce, some employer contributions may be unvested and subject to forfeiture.
When dividing the Verdun 401(k) Retirement Plan, the QDRO must explicitly address:
- What happens to unvested balances?
- Does the alternate payee receive a share of the vested balance only?
- Will future vesting be addressed if the employee remains with the company?
Loan Balances: Don’t Overlook the Hidden Debt
401(k) loans to the participant can significantly reduce the overall value of the account. If your ex-spouse has taken a loan from their Verdun 401(k) Retirement Plan, it’s critical to address this in the QDRO.
The QDRO should specify:
- Whether the alternate payee’s share will be calculated before or after subtracting the loan balance
- Who is responsible for repaying the loan
- What happens if the loan goes into default
This is a common area where mistakes can cost thousands, so don’t assume the plan will sort it out without express language in the QDRO. Learn more about typical pitfalls at our common QDRO mistakes page.
Traditional vs. Roth Contributions in the Verdun 401(k) Retirement Plan
If the plan includes both traditional (pre-tax) and Roth (after-tax) sub-accounts, it’s vital that the QDRO addresses how both will be divided. Roth 401(k) contributions and their earnings can have different tax implications when distributed or rolled over.
The QDRO should make clear:
- Whether the allocation applies proportionally to both Roth and traditional funds
- How taxes will be handled if the alternate payee takes a cash distribution
- Whether any Roth funds will be rolled over to a Roth IRA to maintain tax-free growth
Timing and Approval Process
Once the QDRO is drafted, several key steps follow:
- Pre-approval by the plan administrator (required for some plans)
- Filing the QDRO with the court and obtaining the judge’s signature
- Submission of the signed order to the plan
- Follow-up and confirmation of approval
Plan administrators typically take several weeks to review and approve QDROs. Our clients often ask how long the process will take—that depends on several things. See our guide on 5 factors that determine how long it takes to get a QDRO done.
Missing EIN and Plan Number? Here’s What to Do
The Verdun 401(k) Retirement Plan details currently don’t list an EIN or plan number. These identifiers are essential for preparing a QDRO and submitting it to the court and plan administrator.
To get this information:
- Ask the plan participant to request a copy of the Summary Plan Description (SPD) from their HR department
- Look at any annual or quarterly account statements
- Contact the plan administrator directly if necessary
We strongly recommend gathering this information early in the divorce process to prevent unnecessary delays.
Why Work with PeacockQDROs?
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. At PeacockQDROs, our process is full-service. We don’t leave you with a do-it-yourself legal document. We:
- Draft your QDRO using plan-specific language
- Communicate with the plan administrator to ensure compliance
- File the QDRO in court
- Submit it to the plan and follow up until implementation is complete
Explore how we can help at our main QDRO resource page.
Conclusion
Dividing the Verdun 401(k) Retirement Plan may seem intimidating, especially with issues like vesting schedules, loan balances, and account types on the table. But it doesn’t have to be overwhelming. With a well-drafted QDRO that accounts for the specific structure of this plan sponsored by Verdun management Co. LLC, you can protect your share and avoid costly errors.
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 Verdun 401(k) 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.