Understanding QDROs and the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust
If you’re going through a divorce and one of you has a retirement account through the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust, dividing those assets isn’t as simple as splitting a checking account. Retirement accounts require a special court order—a Qualified Domestic Relations Order (QDRO)—which legally directs the plan to make payments to an alternate payee, typically the ex-spouse.
This guide breaks down everything you need to know about dividing the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust in your divorce. Because it’s a 401(k) plan sponsored by a private company in the general business industry, there are some unique factors to consider—particularly employer contributions, vesting, outstanding loans, and account types like Roth and Traditional 401(k)s.
Plan-Specific Details for the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust
- Plan Name: Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust
- Sponsor: Sqz biotechnologies company
- Address: 200 Arsenal Yards Blvd
- Industry: General Business
- Organization Type: Business Entity
- Plan Status: Active
- Plan Number and EIN: Currently Unknown – required documentation for QDRO drafting
- Effective Date: Unknown
- Plan Year: Unknown
- Assets and Participants: Data not publicly available
Although some plan details like EIN and Plan Number aren’t published, we can obtain this information directly from the plan administrator as part of our standard QDRO process at PeacockQDROs.
How 401(k) Plans Like This One Are Typically Divided in Divorce
QDROs for 401(k) plans are structured to divide contributions made during the marriage. You’ll typically divide the “marital portion,” which are the account contributions and growth from the date of marriage to the date of separation (or other timeframe agreed upon or ordered by the court).
Employee Contributions
The participant’s own contributions to the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust are always fully vested and count toward the marital portion if made during the marriage. These amounts are typically split percentage-wise or with a fixed dollar amount in the QDRO.
Employer Contributions and Vesting
Things get more complicated with employer contributions. In most 401(k) plans, these contributions are subject to a vesting schedule. If the participant isn’t fully vested at the time of divorce or QDRO preparation, only the vested portion is divisible.
Unvested amounts belong solely to the plan participant and are typically excluded from the alternate payee’s share. However, it’s important that your QDRO clearly states that non-vested amounts are not part of what’s divided so there’s no future confusion.
Forfeitures and Future Benefits
If the participant terminates employment before becoming fully vested, unvested employer contributions may be forfeited. These forfeitures are another reason the QDRO must include precise language—otherwise, the alternate payee could mistakenly expect a share of funds that won’t exist.
QDRO Considerations for Roth vs. Traditional 401(k) Accounts
The Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust may hold both traditional and Roth subaccounts. This matters significantly when drafting your QDRO because these account types have different tax consequences:
- Traditional 401(k): Funded with pre-tax dollars. Taxes are owed when funds are distributed to the alternate payee.
- Roth 401(k): Funded with after-tax dollars. Qualified distributions to the alternate payee may be entirely tax-free.
The QDRO should specify the account type(s) being divided. If both Roth and Traditional funds are to be split, the order must break those down proportionally or designate amounts from each subaccount.
How Outstanding Loans Affect the Division
If the participant has a loan against their 401(k), it will appear as an outstanding balance. Loan balances are typically excluded from the divisible balance unless otherwise agreed or ordered. However, not accounting for this can skew the fairness of the division.
Here are two common ways to address loan balances in QDROs:
- Exclude the loan balance from the marital portion and divide only the net account value.
- Treat the loan balance as an asset actually received by the participant, and credit the alternate payee with a higher share to offset it.
Clarity in this section of the QDRO is crucial to avoid future disputes and calculation errors by the plan administrator.
The QDRO Process for This Plan
The QDRO process for the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust generally follows these steps:
- Determine the marital portion and how it should be divided (percentage, dollar amount, date range).
- Collect information about the participant’s account, including plan contact information and account statements.
- Draft the QDRO with specific references to the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust and the relevant account types.
- Submit the QDRO for pre-approval if the plan administrator allows it (helpful to prevent rejection after court entry).
- Have the court sign and enter the QDRO.
- Submit the signed QDRO to the plan administrator for implementation.
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. Unlike many general practitioners who do only the drafting (and often get it wrong), we take you from start to finish—with lower risk of rejection and faster finalization.
Common Issues in QDROs for 401(k) Plans
401(k) QDROs have some traps that aren’t immediately obvious, particularly plans that offer multiple contribution types or have complicated vesting rules. Some key issues we regularly correct from poorly drafted QDROs include:
- Failure to identify whether the funds are Roth or Traditional
- Language that ignores unvested employer contributions
- No guidance on handling loans or forfeitures
- Lack of survivorship or timing clauses that can delay processing
We’ve laid out common mistakes here: Common QDRO Mistakes. Prevention is easier than correction—getting it right the first time matters.
How Long Does a QDRO Take for This Plan?
The timeline for getting a QDRO completed and implemented depends on several factors including how responsive the plan administrator is and whether the parties cooperate. We break down the timing here: QDRO Timing Factors.
We’ve worked with many business entity plans like those in the general business space and know how to contact administrators quickly, gather missing plan details, and speed up the process as much as possible.
Talk to a QDRO Professional Who Knows This Stuff Inside and Out
Dividing a 401(k)—especially one like the Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust—isn’t just a form-filling exercise. It takes care, knowledge of IRS and Department of Labor rules, and experience with plan-specific quirks.
If your divorce involved retirement assets or you’re tasked with dividing this specific plan, let us help. Visit our main QDRO page to understand our full process or send us a question directly.
Final Tip: Always Use a Firm That Follows Through
Picking the right QDRO professional means the difference between a usable order and a mess that the plan rejects. At PeacockQDROs, we get it right because QDROs are all we do. We handle everything—from drafting to court to plan processing—so you don’t have to figure it out on your own.
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 Sqz Biotechnologies 401(k) Profit Sharing Plan & Trust, 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.