Introduction
When going through a divorce, retirement assets often make up a significant part of the marital estate. One of the most overlooked—but critically important—steps in dividing these accounts is the Qualified Domestic Relations Order (QDRO). If you or your former spouse participated in the The Colony Hotel, Inc.. 401(k) Savings Plan, it’s vital to understand how this specific plan operates and how it can be divided correctly. In this article, we’ll walk you through the QDRO process as it applies to The Colony Hotel, Inc.. 401(k) Savings Plan, addressing important features such as vesting schedules, plan loans, Roth components, and more.
What Is a QDRO?
A Qualified Domestic Relations Order, or QDRO, is a court order that tells a retirement plan administrator how to divide retirement assets following a divorce. QDROs are the only way to divide a qualified retirement plan like a 401(k) without triggering early withdrawal penalties or taxes (if handled correctly).
For the The Colony Hotel, Inc.. 401(k) Savings Plan, a proper QDRO will instruct the plan administrator how to allocate a certain portion of the participant’s account to their ex-spouse, legally referred to as the “alternate payee.”
Plan-Specific Details for the The Colony Hotel, Inc.. 401(k) Savings Plan
Here are the known details specific to this retirement plan:
- Plan Name: The Colony Hotel, Inc.. 401(k) Savings Plan
- Sponsor: The colony hotel, Inc.. 401(k) savings plan
- Address: 155 Hammon Avenue
- Industry: General Business
- Organization Type: Corporation
- Plan Number: Unknown (required to be obtained during QDRO process)
- EIN: Unknown (required by the court and plan administrator)
- Status: Active
- Effective Dates: Operational since at least January 1, 2007
Note: Because this plan is employer-sponsored and operates under a corporate structure, it’s governed by ERISA (Employee Retirement Income Security Act). This means your QDRO must comply both with federal ERISA guidelines and the rules specific to the plan in question.
Key Issues When Dividing the The Colony Hotel, Inc.. 401(k) Savings Plan
1. Employee and Employer Contributions
401(k) plans typically include both employee deferrals and employer-matching contributions. In divorce, both types of contributions can be assigned to the alternate payee, but only to the extent they were earned during the marriage.
However, employer contributions are often subject to vesting requirements. If the participant spouse hasn’t met the full vesting schedule, any unvested amounts may be forfeited entirely upon employment termination or divorce, depending on the plan terms. The QDRO should spell out how these situations will be handled.
2. Vesting Schedules
Many corporate 401(k) plans—especially those in the general business sector—follow a vesting schedule for employer contributions. This usually falls under either a graded or cliff vesting schedule. You’ll need to determine how much of the employer match is actually vested as of the division date. If portions are forfeitable, this impacts how much the alternate payee actually receives. Your QDRO should address forfeiture and clarify treatment of non-vested funds.
3. Outstanding Loan Balances
If the participant spouse has taken out a loan against their The Colony Hotel, Inc.. 401(k) Savings Plan account, the QDRO must state how that loan will be handled. Will it reduce the balance before division? Or will it remain the full value, leaving the loan solely with the participant?
This is one of the most common QDRO mistakes. If it’s not addressed properly, it can cause disputes and delay the distribution. Learn more about common QDRO pitfalls here.
4. Roth vs. Traditional Funds
The The Colony Hotel, Inc.. 401(k) Savings Plan may include both traditional (pre-tax) funds and Roth (after-tax) contributions. These accounts have different tax treatments when distributed, and your QDRO must specify how each portion is handled. Roth funds should remain Roth funds when transferred. If ignored, the alternate payee may face unexpected tax consequences.
Timing and Process of Getting a QDRO Done
Getting a QDRO finalized involves several steps, and each one must be followed carefully to avoid delays. Here’s the typical timeline:
- Gather all plan-specific information including plan name, sponsor, address, EIN, plan number, and effective dates
- Draft the QDRO in line with the plan’s rules
- Submit for plan administrator pre-approval (if allowed)
- File the signed order with the court
- Send court-certified QDRO to the administrator for processing
To understand what can affect how long this process takes, review our article on QDRO timing factors.
What Documents You’ll Need
To initiate the QDRO for the The Colony Hotel, Inc.. 401(k) Savings Plan, you’ll need the following:
- The full legal name of the plan: The Colony Hotel, Inc.. 401(k) Savings Plan
- Plan sponsor information: The colony hotel, Inc.. 401(k) savings plan
- Plan ID numbers, including EIN and Plan Number (these may need to be obtained via subpoena or formal request)
- Most recent account statements showing vested balance, contributions, and any loans
- Details of the divorce judgment—especially the agreed-upon terms for retirement plans
Why Experience Matters
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 need help getting started, visit our QDRO solutions page or contact us directly.
Final Thoughts
Dividing a retirement plan like the The Colony Hotel, Inc.. 401(k) Savings Plan may seem like just another item on the divorce checklist—but if it’s not handled correctly, it can have real financial consequences. Make sure your QDRO addresses all the plan’s nuances, from vesting schedules to loan balances and account types. Being proactive and detail-oriented in the drafting and filing process is the best way to both protect your rights and avoid future complications.
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 The Colony Hotel, Inc.. 401(k) Savings 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.