Understanding QDROs and Why the The Century 401(k) Plan Requires One
If you’re going through a divorce and either you or your spouse has a retirement account with Century kitchens, Inc., you’re going to need something called a Qualified Domestic Relations Order—or QDRO—to divide the account legally. Specifically, if the retirement asset in question is The Century 401(k) Plan, the QDRO must meet several plan-specific and legal requirements to avoid delays or rejections.
This article will walk you through how to divide the The Century 401(k) Plan using a QDRO, highlight common mistakes, and explain what makes 401(k) plans—particularly this one—different from other retirement vehicles when it comes to division after divorce.
Plan-Specific Details for the The Century 401(k) Plan
Before getting into the QDRO process, it’s important to understand the details behind The Century 401(k) Plan. Here’s what we know:
- Plan Name: The Century 401(k) Plan
- Sponsor: Century kitchens, Inc.
- Address: 106 BETHLEHEM PIKE
- Plan Type: 401(k) Retirement Plan
- Organization Type: Corporation
- Industry: General Business
- Plan Number: Unknown (must be requested from the plan administrator)
- Employer Identification Number (EIN): Unknown (must be requested for the QDRO)
- Status: Active
- Effective Dates: January 1, 2024 through December 31, 2024
For a valid QDRO, you’ll need missing data like the plan number and EIN. These are typically available through HR or directly from the plan’s administrator. Without them, the QDRO won’t be processed.
Key Factors When Dividing a 401(k) with a QDRO
Employee and Employer Contributions
The Century 401(k) Plan likely includes both employee deferrals and employer matching contributions. The QDRO must clearly define:
- Whether both types of contributions are to be divided
- The method of division (percentage vs. fixed dollar)
- How gains/losses are applied from the date of division to the date of distribution
Unless stated otherwise, employer contributions may be excluded—especially if they were not vested at the time of divorce. Which leads us to…
Vesting Status of Employer Contributions
Many 401(k) plans like The Century 401(k) Plan follow a vesting schedule. That means the employer’s matching contributions may not entirely belong to the employee until certain service milestones are reached. In a divorce, this can be a big issue:
- Unvested amounts are usually forfeited after divorce if the employee leaves the company
- QDROs can only assign vested funds to the alternate payee (spouse)
Make sure your QDRO reflects the vesting status as of the cut-off or division date in the divorce decree. Otherwise, you may award funds that legally don’t exist.
Loan Balances and Repayment Liabilities
The Century 401(k) Plan may allow employees to borrow from their account. If there’s a loan involved, the QDRO must state whether:
- The loan balance is subtracted from the account before division
- The spouse shares any repayment obligations (usually they do NOT)
Most QDROs exclude outstanding loans when determining the alternate payee’s share. However, we’ve seen attorneys overlook this, causing long delays or rejected orders.
Roth vs. Traditional 401(k) Subaccounts
Many 401(k) plans, including The Century 401(k) Plan, allow both Roth and traditional contributions. The QDRO should specify one of the following:
- A proportionate share of all account types
- Only pre-tax (traditional) or after-tax (Roth) subaccounts
Failing to designate how to split the two types may lead to processing issues with the plan administrator. This is especially important because Roth and traditional distributions are taxed differently.
The QDRO Process for The Century 401(k) Plan
Step 1: Get Information from Century kitchens, Inc.
You’ll need a copy of The Century 401(k) Plan Summary Plan Description (SPD), plan procedures for QDROs, and administrator contact details. Request the plan number and EIN if they aren’t known.
Step 2: Draft the QDRO Carefully
This is where mistakes often happen. An accurate QDRO for The Century 401(k) Plan must follow:
- The exact division method agreed upon in the divorce
- Vesting rules and loan repayments
- Whether to divide Roth and traditional accounts equally or specify differently
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.
Step 3: Preapproval (if allowed)
Confirm if The Century 401(k) Plan allows for preapproval of the draft order. This can save weeks of time later if revisions are needed. Be prepared to resubmit drafts if the language is unclear or too generic.
Step 4: Court Approval and Filing
Once the draft is finalized, the QDRO must be signed by the judge and entered with the divorce court. Then it needs to be mailed or submitted electronically to the plan administrator for formal review and approval.
Step 5: Administrator Review and Distribution
The plan administrator for The Century 401(k) Plan will review the QDRO for compliance. If approved, they will set up a separate account for the alternate payee (the spouse) and notify both parties of their benefits.
Don’t forget: Some accounts may take 30–90 days to distribute, depending on processing times. Want to know what influences the timeline? Check out our guide on QDRO timing.
Common QDRO Mistakes with The Century 401(k) Plan
We see these errors often when plans like The Century 401(k) Plan are involved:
- Failing to specify how gains/losses are handled
- Overlooking unvested employer contributions
- Not addressing outstanding loan balances
- Combining Roth and traditional funds without explanation
- Submitting a QDRO without plan number and EIN
These may sound like small oversights, but one error can delay distribution by months. If you want to avoid these problems, check out our article on common QDRO mistakes.
Why Work with PeacockQDROs?
Our team has handled thousands of QDROs for 401(k) plans, including many like The Century 401(k) Plan. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Unlike fill-in-the-blank QDRO services, we guide you from start to finish.
You can start by reviewing our QDRO services or contact us for personalized guidance.
Final Thoughts
Dividing a 401(k) like The Century 401(k) Plan requires more than just a divorce decree. If there are Roth subaccounts, unvested employer contributions, or an outstanding loan, the QDRO needs to account for them. And missing basic information—like the Plan Number or EIN—can stop the process in its tracks.
A good QDRO ensures each party gets their fair share while avoiding months of delays and rejection letters from the plan administrator. We’re here to help.
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 The Century 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.