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.
Understanding the specific details of this plan helps ensure your QDRO is done right. Here’s what we know:
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.
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:
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:
Roth and traditional dollars are treated differently for tax purposes. A mistake here can create unintended tax consequences down the road.
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.
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 QDRO should address how the account is valued with regard to loans to avoid disputes and delays during processing.
The valuation date is the “cut off” for calculating the amount awarded. Common choices include:
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 topQDRO mistakes we see.
At PeacockQDROs, we’ve completed many QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the rest. We handle:
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 aboutour full-service QDRO approach.
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 the5 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.
Some typical QDRO formats for this plan include:
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.
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 focus on QDROs and have successfully processed many orders from start to finish.
Get the answers you need—explore ourQDRO resources orreach out for personalized help if you’re in one of our service states.
Willie has handled hundreds of QDROs, been named as a stipulated or court-appointed expert in hundreds of orders, testified as an expert witness on QDROs and state government pension survivor benefits, and taught CLEs on QDROs, legal ethics, and military pensions. He is a three-time ABA award-winning legal author and secured a victory before the North Dakota Supreme Court. Full bio →
