Why the Precision Lighting and Electric LLC 401(k) Plan Matters in Divorce
Dividing a 401(k) plan like the Precision Lighting and Electric LLC 401(k) Plan during divorce can be complicated. Retirement accounts often represent one of the largest marital assets, so getting it right isn’t optional—it’s critical. A Qualified Domestic Relations Order (QDRO) is the legal tool used to divide this type of account properly and avoid tax penalties. And when it comes to the plan sponsored by “Precision lighting and electric LLC 401k plan,” divorcing spouses need to understand a few key issues before splitting retirement assets.
Plan-Specific Details for the Precision Lighting and Electric LLC 401(k) Plan
Understanding the specific plan you’re dealing with is the first step in a successful QDRO. Here’s what we know about the Precision Lighting and Electric LLC 401(k) Plan:
- Plan Name: Precision Lighting and Electric LLC 401(k) Plan
- Sponsor: Precision lighting and electric LLC 401k plan
- Address: 20250702143227NAL0018968048001, 2024-01-01
- Employer Identification Number (EIN): Unknown
- Plan Number: Unknown
- Industry: General Business
- Organization Type: Business Entity
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
Even without full data, the QDRO process for this plan requires precision and familiarity with 401(k) rules. Whether the employee works in the field or the office, the same laws apply—but the details of their account can vary significantly.
How QDROs Work for 401(k) Plans
A QDRO is a court order that divides retirement benefits between the account holder (called the participant) and their former spouse (called the alternate payee). For the Precision Lighting and Electric LLC 401(k) Plan, the QDRO must be drafted carefully to align with the plan’s provisions and federal law.
It’s not enough to include general language in your judgment. Without a QDRO approved by the plan administrator, the division won’t happen—and the alternate payee risks losing out entirely. At PeacockQDROs, we’ve drafted thousands of QDROs and know how to get them done from start to finish.
Key Issues When Dividing the Precision Lighting and Electric LLC 401(k) Plan
Employee vs. Employer Contributions
401(k) accounts typically include contributions made by both the employee and the employer. In divorce, the QDRO needs to address both sources. The employee’s contributions and investment earnings are generally marital property if made during the marriage. The employer’s contributions might be subject to a vesting schedule—which can limit what’s actually divisible.
If the employer made contributions during the marriage but they’re not fully vested at the time of separation, you’ll need to decide whether to include or exclude them from the QDRO. Be careful: if you try to divide unvested amounts, the plan may reject the order entirely.
Vesting Schedules and Forfeitures
Many employer contributions come with a vesting schedule—meaning the employee earns the right to those funds over time. If the participant leaves employment early, some amounts may be forfeited. This can affect the alternate payee’s award significantly.
Your QDRO should clearly state whether the award includes only vested amounts or anticipates future vesting. Both options are legal, but they must be worded properly so the plan administrator can follow through.
Plan Loans
401(k) participants can often take loans from their accounts. If a loan exists in the Precision Lighting and Electric LLC 401(k) Plan at the time of divorce, it impacts the balance available to divide. Do you divide the net balance (account minus loan), or the gross balance and assign the loan separately? That’s a decision that should be made intentionally—and written clearly in the QDRO.
Many plans, including smaller business plans like this one, require that QDROs account for any outstanding loan balances, including whether the alternate payee will be responsible for repayment. Get it wrong, and the plan may reject the order or fail to interpret it correctly.
Roth vs. Traditional Balances
If the Precision Lighting and Electric LLC 401(k) Plan allows Roth contributions, it’s critical that the QDRO breaks down awards by account type. Roth accounts are post-tax and grow tax-free. Traditional 401(k) accounts, on the other hand, are pre-tax and subject to income tax upon distribution.
The QDRO should assign each account type separately. Otherwise, the alternate payee may get a tax surprise—or the plan may request costly revisions. Always specify if you’re dividing traditional-only, Roth-only, or both.
Documentation You’ll Need
While the Precision Lighting and Electric LLC 401(k) Plan doesn’t have a listed plan number or EIN, these items are required on every QDRO submission. If your attorney or drafter doesn’t have them, you’ll need to get them from the plan summary or contact the plan administrator. At PeacockQDROs, we take care of those follow-up steps for you so nothing gets missed.
Tips for Getting the QDRO Right
- Don’t wait until after the divorce is finalized. The best time to prepare a QDRO is during the divorce—not after.
- Be specific with date ranges and percentages. Use clear language like “50% of the marital portion accrued from June 1, 2006, through December 1, 2023.” Ambiguity causes delays.
- Watch out for income and gains/losses. Specify whether the alternate payee is entitled to market adjustments after the division date.
- Review our guide to common QDRO mistakes. A few small errors can set you back weeks—or worse, cost you money.
How Long Does It Take?
Timing is everything. The full QDRO process—from drafting through court approval and plan implementation—can take several months. But that timeline depends on five key factors. Read about what affects your QDRO timeline so you can plan ahead.
What Makes PeacockQDROs Different
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. Whether you’re dividing a 401(k) from a small business like the Precision Lighting and Electric LLC 401(k) Plan or a large corporate plan, we make sure the details are correct and the process is smooth.
Visit our QDRO services page or contact us directly if you need help dividing your retirement plan.
Final Thoughts
Dividing the Precision Lighting and Electric LLC 401(k) Plan takes more than just inserting a sentence in your judgment. It requires a legally binding QDRO that meets the plan’s standards, complies with federal law, and protects both parties’ interests. Get it done right the first time—and avoid costly corrections and delays down the road. Let experienced professionals handle the process so you can focus on moving forward.
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 Precision Lighting and Electric LLC 401(k) 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.