Understanding the Employee Benefit Plan of Factory Connection, LLC in Divorce
Dividing a 401(k) in divorce is never simple, and when the retirement plan in question is the Employee Benefit Plan of Factory Connection, LLC, there are key elements that need special attention. Whether you’re the participant or the alternate payee, getting your share fairly and correctly depends on a solid, court-approved Qualified Domestic Relations Order (QDRO). As specialists in retirement order processing, we at PeacockQDROs have handled thousands of QDROs from start to finish—and we know the common pitfalls that can cost people time and money.
This article focuses specifically on how to divide the Employee Benefit Plan of Factory Connection, LLC during divorce using a QDRO, and what rights and protections each party has in the process.
Plan-Specific Details for the Employee Benefit Plan of Factory Connection, LLC
Here’s what we know about this particular plan:
- Plan Name: Employee Benefit Plan of Factory Connection, LLC
- Sponsor Name: Employee benefit plan of factory connection, LLC
- Address: 2300 HIGHWAY 79 S
- Industry Type: General Business
- Organization Type: Business Entity
- Plan Status: Active
- Plan Type: 401(k)
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Participants: Unknown
- EIN: Unknown (required for QDRO submission)
- Plan Number: Unknown (also required for QDRO submission)
Because the EIN and plan number are unknown, it will be especially important to obtain these details from the plan administrator or divorce attorney before drafting the QDRO. Missing or incorrect information will delay processing.
Key 401(k) Division Concerns in Divorce
Employee and Employer Contributions
Most 401(k) plans, including the Employee Benefit Plan of Factory Connection, LLC, consist of both employee deferrals and employer contributions such as matching funds. Contributions made by the employee are always considered marital property if made during the marriage. Employer contributions, however, may be subject to a vesting schedule.
In the QDRO, you’ll need to decide how to divide both types of contributions. Don’t assume all funds are available to split. Some employer contributions may not have vested yet and could be excluded unless vesting occurs before the distribution.
Vesting Schedules and Forfeited Amounts
401(k) plans often include employer-contribution vesting schedules that determine how much of the employer’s contributions the employee owns at a given time. In the case of Employee Benefit Plan of Factory Connection, LLC, this schedule isn’t publicly available but can be obtained by request.
An unvested portion is subject to forfeiture, meaning it disappears if the employee leaves the company too soon. Your QDRO should include specific language about how unvested funds will be treated—whether the alternate payee gets nothing, or becomes eligible if the participant later becomes vested.
Loan Balances
It’s common for participants to have taken loans from their 401(k). These loans reduce the account value at the time of division. For the Employee Benefit Plan of Factory Connection, LLC, a detailed plan statement must be used to confirm loan amounts.
The QDRO should clarify whether the loan balance will be considered as part of the divisible account, or excluded altogether. If not addressed properly, one party might unfairly benefit or lose out due to a loan balance reduction that was never discussed.
Roth vs. Traditional 401(k) Funds
If the plan allows for both Roth and Traditional 401(k) contributions, it’s critical to treat them separately in the QDRO. Roth contributions are post-tax, while Traditional contributions are pre-tax. Transferring the wrong type creates unnecessary tax complications for the alternate payee.
Your QDRO must specify whether the division should apply proportionally to both types of subaccounts, or only to a designated one. The divorce agreement should also make this distinction before the QDRO is drafted.
Qualified Domestic Relations Order (QDRO) Basics
What Is a QDRO?
A QDRO is a legal document signed by a judge that directs the plan administrator how to divide retirement assets between divorcing spouses. It creates a legal right for the alternate payee (typically the non-employee spouse) to receive part of the retirement plan benefits without triggering a tax penalty.
Without a QDRO, even a well-written divorce judgment will NOT force the plan to transfer funds. And if done incorrectly, a bad QDRO can delay or deny the distribution altogether.
Required Information for Submission
To submit a valid QDRO for the Employee Benefit Plan of Factory Connection, LLC, you’ll typically need:
- The exact plan name (as listed above)
- The sponsoring employer’s full name: Employee benefit plan of factory connection, LLC
- Plan number (must be obtained directly from the employer or Summary Plan Description)
- Employer’s EIN (also a required field for most plan administrators)
The more complete your documentation, the faster the QDRO can be processed.
Common Mistakes to Avoid When Dividing This Plan
Over the years, we’ve seen a number of avoidable errors when people try to divide plans like the Employee Benefit Plan of Factory Connection, LLC:
- Failing to account for loan balances—which can lead to disputes over remaining funds
- Ignoring unvested employer contributions—that later vest but weren’t included in the order
- Not specifying how Roth and Traditional balances are to be treated
- Using the wrong plan name or leaving out the plan sponsor details
- Submitting a QDRO without confirming pre-approval is required
These are all issues we address head-on at PeacockQDROs. We don’t just draft your order and hand it off—we handle preapproval if required, submit the QDRO to the court, then work directly with the plan to make sure it’s accepted and implemented. You won’t be left wondering what’s next.
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. If you’re dividing a plan like the Employee Benefit Plan of Factory Connection, LLC, we can help you avoid the common headaches and get your share protected the right way.
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Final Thoughts on Dividing the Employee Benefit Plan of Factory Connection, LLC
If you or your spouse participated in this 401(k) during the marriage, you have a right to divide those benefits fairly. But you also have to do it carefully. A well-written and properly implemented QDRO for the Employee Benefit Plan of Factory Connection, LLC is essential to preserving your share of the account, avoiding tax hits, and ensuring a timely payout.
Be sure to work with someone who understands the full process—not just how to draft the order, but how to get it accepted and carried out. That’s where skilled QDRO support makes a difference.
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 Employee Benefit Plan of Factory Connection, LLC, 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.