Dividing retirement assets can be one of the most complicated—and stressful—parts of a divorce. If you or your spouse are participants in the Lightspeed Systems 401(k) Profit Sharing Plan through Lightspeed solutions, LLC dba lightspeed systems, having a clear, enforceable Qualified Domestic Relations Order (QDRO) is critical. A QDRO ensures retirement assets are divided legally and effectively, without tax penalties or legal setbacks.
At PeacockQDROs, we guide clients through the full QDRO life cycle—from drafting to plan administrator approval and final execution. Here’s your guide to correctly dividing this specific 401(k) plan in divorce.
Plan-Specific Details for the Lightspeed Systems 401(k) Profit Sharing Plan
- Plan Name: Lightspeed Systems 401(k) Profit Sharing Plan
- Sponsor: Lightspeed solutions, LLC dba lightspeed systems
- Address: 12013 Fitzhugh Road
- Plan Type: 401(k) with profit-sharing component
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Plan Number: Unknown (must be requested for QDRO processing)
- EIN: Unknown (required for documentation; should be confirmed by the plan administrator)
- Effective Dates: Unknown start and end of current plan year
- Plan Inception Date: January 1, 1989
Because this is a 401(k) plan offered by a Business Entity in the General Business sector, divorcing participants should expect employer contributions, potential match vesting schedules, and possibly Roth and loan components.
Why a QDRO Is Required for Dividing This Plan
Without a Qualified Domestic Relations Order, plan administrators will not—and legally cannot—divide plan assets to a former spouse. The QDRO must comply with federal law under ERISA and the Internal Revenue Code, as well as meet the administrative requirements of the Lightspeed Systems 401(k) Profit Sharing Plan.
Even amicable divorce agreements can’t override QDRO requirements. Language in your divorce judgment or mediation agreement won’t direct the plan to divide the account unless it’s in the proper QDRO format.
Key Issues to Address When Dividing This Specific 401(k) Plan
1. Employee and Employer Contributions
Like many 401(k) plans, this one may include both employee deferrals and employer matching or profit-sharing contributions. But not all contributions are immediately owned by the employee. Some may be subject to a vesting schedule, especially employer contributions.
Your QDRO should clearly indicate whether the alternate payee (the non-employee spouse) will receive a share of just the vested account balance or both vested and unvested amounts at the time of division. If a portion is forfeited due to vesting, you may need provisions addressing this.
2. Vesting Schedule Considerations
In many business-sponsored 401(k) plans, employer contributions are not fully vested until several years of service are completed. If your division is being calculated from the date of separation or another earlier date, you’ll want to be clear whether the division is based on the vested amount only or includes unvested amounts if they later mature.
Failure to clarify this could result in disputes or unexpected losses when the QDRO is processed.
3. 401(k) Loan Balances and Repayments
If the employee spouse has an outstanding loan against the Lightspeed Systems 401(k) Profit Sharing Plan, the QDRO must indicate how this loan balance is treated. There are three main options:
- Exclude it and divide only the net balance
- Include it in the total as a marital asset and divide it proportionally
- Assign the loan solely to the participant spouse
Leaving loan treatment vague will confuse the administrator and slow approval. This is one of the most common QDRO mistakes. We cover this and other avoidable errors at common QDRO mistakes.
4. Roth vs. Traditional Contributions
The Lightspeed Systems 401(k) Profit Sharing Plan may have both pre-tax (traditional) and after-tax (Roth) accounts. These need to be handled separately in the QDRO because of their different tax treatments. Failing to distinguish between them could create tax problems for both spouses.
Make sure your QDRO specifies which types of contributions are being divided—and how. For example, a 50/50 share of the total account may require separate allocations of Roth amounts and traditional amounts.
How the QDRO Process Works for This Plan
Step 1: Confirm Plan Administrator Details
Before preparing your QDRO, you’ll need plan administrator contact information and the correct Plan Number and EIN, both still unknown in this case. We can help you obtain this as part of our full-service process.
Step 2: Draft a Compliant QDRO
The QDRO must be tailored to the Lightspeed Systems 401(k) Profit Sharing Plan. It must include:
- Names and addresses of the participant and alternate payee
- Plan name and detailed division instructions
- EIN and plan number (once acquired)
- Direction for vesting, loans, and tax treatment
Our legal team prepares custom, plan-specific QDROs that don’t just meet basic court approval—they’re designed to pass administrative review smoothly.
Step 3: Submit for Preapproval
Some plans allow or require pre-approval of the QDRO draft before it’s signed by the court. While that status is unknown for the Lightspeed Systems 401(k) Profit Sharing Plan at this time, our team will coordinate with the plan administrator directly to determine if preapproval is appropriate or necessary.
Step 4: File with the Court
Once the QDRO draft is ready, it must be filed in the divorce court and signed by a judge. From there, the court-certified copy is sent to the plan administrator for review and processing.
Step 5: Monitor Implementation
A QDRO isn’t finished until benefits are divided as ordered. We follow up with the Lightspeed Systems 401(k) Profit Sharing Plan administrator to confirm benefits are distributed, accounts are created (if needed), and any questions are addressed.
Some people are surprised how long this can take. Learn more about common timeframes in our post on the five factors that affect QDRO timing.
Why Work With 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. Whether you’re the plan participant or the alternate payee, we’re here to protect your rights and retirement benefits.
Learn more about our process at PeacockQDROs QDRO Services.
Final Thoughts
Dividing a retirement plan like the Lightspeed Systems 401(k) Profit Sharing Plan requires attention to plan-specific features—including vesting, loans, and account types. A well-prepared QDRO ensures your division is enforceable, tax-effective, and clearly administered—protecting both parties now and in retirement.
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 Lightspeed Systems 401(k) Profit Sharing 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.