If you're going through a divorce or legal separation that will affect your Gusto 401(k), you'll need to prepare and submit a domestic relations order (DRO). This legal document divides your retirement account according to the court's ruling. Once the document meets all plan requirements, it becomes a Qualified Domestic Relations Order (QDRO).
Getting the required documents
Gusto provides resources to help you prepare a DRO that meets qualification requirements:
Model QDRO: A template you can use to prepare your order
QDRO Determination Procedure & Checklist: Guidelines for what Gusto accepts and doesn't accept in a DRO
You can get these documents by:
Downloading them from your participant dashboard under Documents > Resource Library
Contacting our participant support team
Note: You're not required to use our Model QDRO, but it's designed to make it easier to prepare an order that meets QDRO requirements.
Submitting a draft DRO for review (optional)
Before you go to court, you can submit a draft of your DRO for preliminary review. This step is optional but could save you a trip back to court to amend a court-certified order.
To submit a draft for review, follow these steps:
Upload your draft DRO to the Shared Files folder in your participant dashboard.
Contact us to let us know you've uploaded it.
Important: The review process won't begin until you notify us that the document is ready.
What we review
We'll check your order to confirm it meets the requirements of:
ERISA (Employee Retirement Income Security Act)
Internal Revenue Code
The plan's QDRO rules and procedures
If your order doesn't meet these requirements, we'll provide feedback. You can then revise and resubmit amended drafts as needed.
Heads up: Completing the draft review process doesn't qualify the DRO. You'll still need to submit a final, court-approved version for qualification.
Submitting the final DRO for qualification
Once you have a certified copy of the court order based on your state's requirements, follow these steps:
Upload the certified court order to the Shared Files folder in your participant dashboard.
Contact us to let us know it's available for review.
We'll review the final order and notify you of the determination.
This information is general in nature and is for informational purposes only. It should not be construed as legal advice. Participants and alternate payees should consult a legal advisor when preparing a DRO.