A two-speed transfer case for a four-wheel drive vehicle is provided. The transfer case has a two-speed planetary gearset, a range clutch, and a range shift mechanism. The planetary gearset includes a carrier unit having at least one crack arresting feature configured to limit propagation of a stress crack. The carrier unit includes a plurality of mounting holes for securing planet gears for rotation relative to the carrier unit. The gearset includes a sun gear configured for and a ring gear, with the planet gears in meshed engagement with the sun gear and the ring gear. The crack arresting feature extends at least partially through a portion of the carrier unit and is configured to receive a crack propagating from a central aperture of the carrier unit. The crack arresting feature is disposed radially between the central aperture and the mounting holes.