Understanding QDROs and the Changeup 401(k) Plan
Dividing retirement assets during divorce isn’t just about fairness—it’s about doing it the right way. When one or both spouses have a 401(k), those accounts are typically marital property, and the right tool to divide them is a Qualified Domestic Relations Order, or QDRO. This article focuses specifically on the Changeup 401(k) Plan, offered by Change up, LLC, and provides guidance for divorcing couples who need to divide this plan properly using a QDRO.
Whether you’re the participant or the alternate payee (the spouse receiving a share), getting the order right is essential to avoid delays, overpayments, or legal headaches. As specialists who have handled thousands of QDROs firsthand, we at PeacockQDROs know what it takes to divide retirement plans smoothly and legally.
Plan-Specific Details for the Changeup 401(k) Plan
Here’s what we know about the specific plan in question:
- Plan Name: Changeup 401(k) Plan
- Sponsor: Change up, LLC
- Address: 2056 BYERS RD (Plan Filing Code: 20250819220055NAL0005166034058)
- Plan Year: 2024-01-01 to 2024-12-31 (originally effective 2019-01-01)
- Organization Type: Business Entity
- Industry: General Business
- Status: Active
- EIN/Plan Number: Information is currently unknown but will be required during QDRO drafting
This data helps frame the type of retirement plan structure you’ll be working with when dividing benefits in divorce. Unlike a defined benefit pension, 401(k) plans involve account balances, contributions, and sometimes loans or Roth components—all requiring careful handling in a QDRO.
Why a QDRO is Needed for the Changeup 401(k) Plan
A QDRO is a special court order that allows a retirement plan like the Changeup 401(k) Plan to legally pay a portion of the participant’s account to a former spouse or dependent. Without a QDRO, plan administrators cannot make distributions to an ex-spouse—regardless of what your divorce decree says.
Most courts expect a QDRO to be submitted after the divorce judgment is entered. But waiting too long can lead to complications, especially if the participant takes loans, changes jobs, or faces market losses in the meantime. That’s why early and proper drafting is key.
Key Components to Address in a QDRO for the Changeup 401(k) Plan
1. Employee and Employer Contributions
Many 401(k) plans include both employee deferrals (voluntary contributions) and employer matching contributions. A solid QDRO should separate the portion of the account earned during the marriage. Typically, the order should identify:
- The dates of the marriage (and separation, if applicable)
- The division formula—usually “50% of the marital portion”
- Whether investment gains or losses are included
Employer contributions may be subject to a vesting schedule. This means some employer-matched funds might not be fully owned by the participant yet. The QDRO must clarify whether the alternate payee (former spouse) shares in vested amounts only or also in future vesting.
2. Vesting Schedules and Forfeiture Provisions
If the participant leaves the company before fully vesting, unvested amounts are typically forfeited. A QDRO for the Changeup 401(k) Plan should state how to handle situations where amounts assigned to the alternate payee are not yet vested. It can either:
- Award only the vested balance as of the date of division, or
- Include future vesting credit applicable to the marital portion
3. Loans and Outstanding Loan Repayments
401(k) loans are tricky in divorce cases. The account balance shown to the court may include a loan as an asset—money that doesn’t actually exist because it was borrowed. The QDRO must specify whether:
- The loan is excluded from the divisible share
- The loan remains with the participant (most common approach)
If not addressed clearly, a loan could unfairly reduce the alternate payee’s share or become a point of argument with the plan administrator. Proper language matters here more than people realize.
4. Roth vs. Traditional Accounts
The Changeup 401(k) Plan may allow both pre-tax (traditional) and Roth contributions. These must be treated separately in the QDRO to avoid adverse tax consequences:
- Traditional (pre-tax): Distributions are taxable to the payee upon withdrawal
- Roth: Distributions are usually tax-free if certain conditions are met
The QDRO should specify if the alternate payee is receiving a proportional share of both account types. The plan may separate them automatically, but clear instructions remove ambiguity.
Steps to Divide the Changeup 401(k) Plan via QDRO
1. Gather Plan and Participant Information
Because the plan number and EIN are currently not publicly listed, you or your attorney must request this information directly from the Change up, LLC HR team or plan administrator. These are required identifiers that must be listed in the QDRO.
2. Draft the QDRO Properly
You can’t just copy and paste language from another order. The Changeup 401(k) Plan may have unique requirements or formatting guidelines. A proper QDRO will include:
3. Obtain Plan Preapproval (if applicable)
Some administrators allow or encourage preapproval of the draft QDRO before it’s signed by the judge. While not all plans offer it, we always check and take advantage of it when possible. Preapproval prevents rejections after court entry.
4. Get Court Approval and File
The QDRO must be signed by a judge and entered into your divorce file. Once finalized, it’s submitted to the plan for processing.
5. Follow Up Until Completed
This is where many DIY QDROs fall apart. The language might be fine, but the parties do nothing after filing it. At PeacockQDROs, we handle not only the drafting but also the preapproval (when available), filing, submission to the plan, and follow-up to ensure everything is executed.
We don’t just hand you a form and wish you luck. That follow-through is why we consistently maintain near-perfect reviews.
Avoiding Common QDRO Pitfalls
We’ve seen too many avoidable mistakes. Avoid these:
- Choosing the wrong date of division
- Failing to address loans, Roth balances, or unvested funds
- Using generic templates not suited for the plan
Make sure to check out our article on Common QDRO Mistakes to see what to avoid before your order is submitted.
How Long Will This Take?
Every case is different, but we break down average timelines in our guide on the 5 Factors That Determine How Long It Takes to Get a QDRO Done. With PeacockQDROs on your side, we aim to keep things as efficient and accurate as possible.
Final Thoughts
Dividing a 401(k) requires more than a handshake and a calculator. Doing it wrong can cost you thousands—or delay your access to those funds for months. With the Changeup 401(k) Plan sponsored by Change up, LLC, you’re working with a business entity retirement plan that likely includes loans, vesting, and Roth components. Our team understands how to address these nuances.
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 dealing with a 401(k) like this, don’t go it alone.
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 Changeup 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.