Understanding QDROs and the Floqast 401(k) Plan
Dividing retirement assets during a divorce can be one of the most complicated financial steps in the process—especially when dealing with a 401(k) plan like the one offered by Floqast, Inc.. A Qualified Domestic Relations Order (QDRO) is the legal tool used to divide retirement plans such as the Floqast 401(k) Plan without triggering early withdrawal penalties or taxes.
In this article, we’ll walk you through what’s required to properly divide the Floqast 401(k) Plan during a divorce, how QDROs apply specifically to this plan, and key areas you should pay attention to—including employer contributions, loans, and Roth accounts.
Plan-Specific Details for the Floqast 401(k) Plan
Before drafting your QDRO, it’s essential to understand the specific information tied to the Floqast 401(k) Plan:
- Plan Name: Floqast 401(k) Plan
- Sponsor: Floqast, Inc..
- Address: 14721 CALIFA ST.
- Organization Type: Corporation
- Industry: General Business
- Plan Status: Active
- Effective Date: March 8, 2018
- Plan Year: January 1, 2024 to December 31, 2024
- Employer Identification Number (EIN): Unknown (must be obtained through subpoena or from plan documents)
- Plan Number: Unknown (must be confirmed on the Summary Plan Description or via plan administrator)
Because the plan’s EIN and number are not publicly listed, it’s critical to request this information when preparing the QDRO—either directly from the administrator or from the participant’s plan disclosures.
Why QDROs Are Required for the Floqast 401(k) Plan
The Floqast 401(k) Plan is a tax-qualified retirement plan governed by ERISA (the Employee Retirement Income Security Act). That federal law mandates a QDRO be used to legally assign any portion of the account from a participant (employee spouse) to an alternate payee (often the former spouse).
Without a QDRO, the plan administrator cannot legally divide the benefits—no matter what your divorce judgment says.
Key Issues When Dividing the Floqast 401(k) Plan
Let’s break down the core aspects of the plan that must be addressed in your QDRO:
1. Employee and Employer Contributions
Employee contributions (money the participant put in) are always 100% fully vested, meaning they can be divided without issue. However, employer contributions may be subject to a vesting schedule.
- If the employee isn’t fully vested, the unvested portion may be forfeited.
- Your QDRO should specify that only vested employer contributions are divisible.
It’s smart to request a current benefit statement to see the breakdown of employee vs. employer contributions and their vesting status.
2. Loan Balances
401(k) loans can complicate QDRO calculations. Here’s what you need to know:
- Loans are considered part of the participant’s account—even though they’re temporarily unavailable.
- Your QDRO can include or exclude the outstanding loan depending on whether the division is expressed as a percentage or dollar value.
- Be sure to clarify in your order how the loan is treated to avoid future disputes.
At PeacockQDROs, we always verify loan status before drafting your QDRO language.
3. Roth vs. Traditional Accounts
If the Floqast 401(k) Plan includes Roth contributions, those should be treated separately from traditional pre-tax funds. That’s because each type of contribution comes with different tax implications:
- Roth 401(k): Contributions made with after-tax dollars. Distributions are generally tax-free.
- Traditional 401(k): Contributions made with pre-tax dollars. Distributions are taxable to the alternate payee.
Your QDRO should direct the plan administrator to apply the same dollar or percentage division to both Roth and traditional subaccounts proportionally—unless the parties agree to treat them differently.
Vesting Schedules and Forfeitures
Many plans in the General Business sector, including the Floqast 401(k) Plan, use a graded vesting schedule. A common pattern is 20% vesting per year after one year of service. Until participants meet the full vesting period, employer-matched funds may be partially forfeitable.
Always obtain a vesting report before submission. If your QDRO awards unvested funds, those amounts will be forfeited unless the employee eventually satisfies the required service time before termination.
When Timing Matters: QDRO Effective Date
Whether benefits are divided as of the separation date, divorce date, or a specific valuation date is a huge issue. For the Floqast 401(k) Plan, we recommend matching the date used in the divorce decree unless a better alternative is agreed upon.
You must clearly state the effective valuation date in your QDRO to avoid distribution errors.
What Happens After Submitting the QDRO
Your job doesn’t end after the QDRO is signed by the judge. The Floqast 401(k) Plan administrator must review and approve the order. If there’s a mistake, it could delay or block payment altogether.
That’s why many parties 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.
Avoiding Common Pitfalls
The biggest QDRO mistakes we see often involve:
- Not accounting for loan balances correctly
- Omitting Roth vs. traditional fund distinctions
- Failing to check vesting on employer contributions
- Using ambiguous language for the division formula
Want to know more about what to avoid? Check out common QDRO mistakes here.
How Long Does a QDRO for the Floqast 401(k) Plan Take?
Timeline varies, but the average QDRO can take 60 to 90 days from start to finish when done the right way. Factors that impact timing include:
- The responsiveness of plan administrators
- Whether the draft needs preapproval
- How fast the court processes your signed order
For more details on timing, read our article: 5 Factors That Determine How Long It Takes to Get a QDRO Done.
What to Do Next
If your divorce involves the Floqast 401(k) Plan and you’re unsure how to divide it properly, don’t risk doing it alone. Working with experienced QDRO professionals can save you from costly mistakes, delays, and rejected paperwork.
At PeacockQDROs, we know what the Floqast 401(k) Plan requires and how administrators review QDROs. We take pride in getting it done right the first time.
Explore our full set of QDRO resources here or contact us for personalized help.
State-Specific Call to Action
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 Floqast 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.