Why the Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan Matters in Divorce
If you or your spouse has a retirement account through the Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan, it’s critical to understand how this plan can be divided in a divorce. Like many 401(k) plans, dividing this account requires a legal tool called a Qualified Domestic Relations Order (QDRO). Without a QDRO, you can’t legally split this account—even if your divorce settlement says otherwise.
Plan-Specific Details for the Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan
Understanding the specific details of this plan helps ensure your QDRO is done right. Here’s what we know:
- Plan Name: Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan
- Sponsor: Ufp industries, Inc. employees’ profit sharing and 401(k) plan
- Address: 2801 E BELTLINE AVE NE
- Plan Type: 401(k) – Profit Sharing with employee and employer contributions
- Plan Status: Active
- Industry: General Business
- Organization Type: Corporation
- Plan Year: Unknown to Unknown
- Effective Date: 1997-11-16
- Plan Number: Unknown
- EIN: Unknown
- Participants: Unknown
- Assets: Unknown
While some details like plan number and EIN are unknown, these are typically required to complete a QDRO. Your best bet is to request the full Summary Plan Description (SPD) from the plan administrator as early as possible.
QDRO Basics for the Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan
A QDRO is the only legal method to divide a retirement account like the Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan without triggering taxes or penalties. It must meet both federal legal requirements under ERISA and the specific rules of the plan itself.
This type of plan falls into the category of defined contribution plans. That means the value is based on contributions and investment performance—not a monthly pension amount. These plans typically include:
- Employee salary deferral contributions (pre-tax or Roth)
- Employer matching or profit-sharing contributions
- Separate investment accounts with varying performance
- Outstanding loan balances
Key Issues to Consider When Dividing This Plan
1. Distinguishing Between Account Types: Roth vs. Traditional
This plan may contain both traditional pre-tax 401(k) accounts and post-tax Roth 401(k) accounts. When drafting the QDRO, be clear whether the alternate payee is awarded a portion of:
- Only traditional 401(k) assets
- Only Roth 401(k) assets
- A pro-rata share of both
Roth and traditional dollars are treated differently for tax purposes. A mistake here can create unintended tax consequences down the road.
2. Dealing with Employer Contributions and Vesting Schedules
Employer contributions may not fully vest until the employee meets certain service requirements. In this plan, unvested amounts can be forfeited if the employee leaves the company early. If a QDRO awards a fixed dollar amount that includes unvested funds, you could be drafting a worthless order.
To protect the alternate payee, the QDRO can include language clarifying that only vested funds as of the date of division (or QDRO approval) are included, or it can exclude employer contributions entirely if that’s what the parties agreed.
3. What to Do About Loan Balances
It’s increasingly common for participants to have loan balances in their 401(k)s—even large ones. The value of the account may appear higher than it really is if the loan isn’t subtracted. You’ll need to determine whether:
- The award is calculated before or after subtracting the loan
- The loan is assigned to the participant only, or shared
- Loan repayment affects the alternate payee’s share
The QDRO should address how the account is valued with regard to loans to avoid disputes and delays during processing.
4. Setting the Correct Valuation Date
The valuation date is the “cut off” for calculating the amount awarded. Common choices include:
- Date of separation
- Date of QDRO approval by the plan
The plan administrator will apply gains and losses from that date until distribution, but only if the QDRO is drafted clearly. Ambiguity about the valuation date is one of the top QDRO mistakes we see.
Why So Many QDROs Go Wrong—and How We Do It Right
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:
- Initial QDRO drafting with proper tax and legal terms
- Pre-approval (if required) with Ufp industries, Inc. employees’ profit sharing and 401(k) plan
- Court filing and judicial approval
- Submission to the plan and follow-up to confirm processing
That’s what sets us apart from document-only services that leave you stuck trying to figure out the rest. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Learn more about our full-service QDRO approach.
Timing, Delays, and Getting It Done Right
The QDRO process for plans like the Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan can take weeks—or months—if you don’t take the right steps early. For a deeper look at what affects timing, see our breakdown of the 5 key timing factors.
We advise getting started early—especially if you’re the alternate payee and concerned about asset losses while the process drags on.
Common QDRO Drafting Options for This Plan
Some typical QDRO formats for this plan include:
- Percentage-Based Division: Awarding the alternate payee 50% of the vested account as of the date of divorce
- Dollar Amount Awards: $25,000 from the vested portion of the plan
- Separate Interest Approach: Divide the account into a distinct share for each party, with separate future investment risk
Each has pros and cons depending on account size, loan balances, and investment growth expectations. We help you think through these issues before finalizing the order.
Key Takeaways
- You must use a QDRO to divide the Ufp Industries, Inc. Employees’ Profit Sharing and 401(k) Plan
- Be specific about Roth vs. traditional balances
- Account for loan balances and employer vesting
- Get details from the plan administrator early
- Work with a QDRO firm that handles the full process—not just the drafting
Need Help with This QDRO? Start Here
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 Ufp Industries, Inc. Employees’ Profit Sharing and 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.