Introduction
Dividing retirement accounts during divorce often leads to confusion, especially when it involves a company-specific 401(k) plan like the Calo & Sons 401(k) Plan. Whether you’re the employee or the spouse seeking a fair share, understanding how a Qualified Domestic Relations Order (QDRO) applies to this plan is critical. In this article, we’ll walk you through practical considerations, key legal steps, and plan-specific factors that come into play when dividing the Calo & Sons 401(k) Plan.
What Is a QDRO and Why Do You Need One?
A Qualified Domestic Relations Order, or QDRO, is a legal order that assigns a portion of one spouse’s qualified retirement plan to the other spouse (commonly referred to as an “alternate payee”) in divorce. Without a QDRO, the plan administrator for the Calo & Sons 401(k) Plan cannot legally transfer funds to the non-employee spouse — even if it’s ordered in the divorce decree.
Plan-Specific Details for the Calo & Sons 401(k) Plan
When preparing a QDRO for the Calo & Sons 401(k) Plan, knowing the specific plan data is essential. Here’s what we know:
- Plan Name: Calo & Sons 401(k) Plan
- Sponsor: Calo & sons construction, Inc..
- Industry: General Business
- Organization Type: Corporation
- Plan Number: Unknown (required — must be obtained from plan administrator)
- EIN: Unknown (required — must be requested or found in plan documents or tax forms)
- Participants: Unknown
- Plan Year: Unknown to Unknown
- Effective Date: Unknown
- Status: Active
- Assets: Unknown
Because many key data points are still unknown, gathering documents directly from Calo & sons construction, Inc.. or the plan administrator will be a key first step. This includes obtaining the Summary Plan Description (SPD) and any relevant QDRO procedures.
Key QDRO Considerations for 401(k) Plans
Unlike pensions, 401(k) plans are defined contribution plans. This means value fluctuates and accounts often contain different types of contributions and sub-accounts. Here’s what makes QDROs for the Calo & Sons 401(k) Plan unique:
1. Employee and Employer Contributions
Both employee deferrals and employer matching or profit-sharing contributions need to be addressed. The QDRO should specify whether the alternate payee receives a share of:
- Just the participant’s contributions
- All plan contributions, including employer matches
Employer contributions may be subject to vesting schedules, so it’s crucial to understand how vested and non-vested assets impact the division.
2. Vesting Schedules
Most corporate-sponsored 401(k) plans, including those under General Business employers like Calo & sons construction, Inc.., use graduated vesting schedules. If the participant isn’t fully vested in employer contributions, any unvested amounts may be forfeited upon separation of service.
The QDRO should be clear: Does the alternate payee get a share of only vested amounts as of a set date (like date of divorce)? Will future vesting apply? These details directly affect how much is transferred.
3. Existing Loan Balances
If the participant has taken out a loan from their Calo & Sons 401(k) Plan account, this impacts the account’s total value. The QDRO should address:
- Whether the alternate payee’s share includes or excludes the outstanding loan balance
- If repayment or responsibility is factored into the division
In most cases, loans stay with the participant and are not split, but this needs to be clearly written into the order.
4. Traditional 401(k) vs. Roth 401(k) Accounts
Some plans separate Roth and traditional 401(k) balances. Traditional contributions are pre-tax, while Roth contributions are post-tax. This distinction affects tax treatment on withdrawal.
The QDRO must be clear on how the division applies to different sub-accounts. If part of the account is Roth, we may recommend creating language that separately assigns interest in each account type rather than using a flat percentage of the total balance.
Common Pitfalls in 401(k) QDROs
From our experience drafting thousands of QDROs, here are frequent mistakes we see with 401(k) plans:
- Failing to properly divide Roth vs. traditional balances
- Ignoring loan balances during valuation and division
- Omitting specific language for vesting or post-division gains/losses
- Incorrect or missing plan name, number, or sponsor details
We’ve written more about other common QDRO mistakes here.
Timing and Process: What to Expect
Each QDRO for the Calo & Sons 401(k) Plan must go through several steps before the alternate payee receives funds. The timeline depends on how quickly you gather the right information and whether the plan has a preapproval process. For a breakdown of what affects timing, check out our guide: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
Steps in the QDRO Process
- Obtain plan documents and QDRO procedures from Calo & sons construction, Inc..
- Hire a QDRO attorney (like us!) to draft the order
- Seek preapproval from the plan administrator, if offered
- File the order with the divorce court
- Submit the signed, certified order to the plan administrator for implementation
- Funds are transferred to the alternate payee’s designated retirement account
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. You can learn more about our full QDRO process here: https://www.peacockesq.com/qdros/.
Tips for Dividing the Calo & Sons 401(k) Plan Fairly
If you’re going through a divorce that involves this specific plan, keep these points in mind:
- Get current account statements — including all sub-account types (Roth vs. traditional)
- Request the full vesting schedule from Calo & sons construction, Inc..
- Clarify handling of any loan balances
- Decide on the division strategy: percentage, fixed dollar, shared interest with gains/losses
Conclusion
The Calo & Sons 401(k) Plan presents unique challenges in divorce, from figuring out vesting to dealing with Roth accounts and loans. But with the right guidance and a properly drafted QDRO, you can protect your share of retirement assets. Make sure all plan-specific details are addressed clearly and precisely in your order to avoid delays or costly mistakes.
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 Calo & Sons 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.