Protecting Your Share of the Revlon Employees Savings, Investment, Profit Sharing Plan: QDRO Best Practices

Profit sharing plans like the Revlon Employees Savings, Investment, Profit Sharing Plan can be more involved than straightforward defined contribution plans. That’s because they typically include:

• Salary deferral (401(k)) contributions made by employees
• Matching or profit-sharing contributions from the employer
• Vesting schedules on employer contributions
• Optional Roth (after-tax) components

Each of these components must be considered when dividing the account through a QDRO.

One of the primary complications in dividing a profit sharing plan is the vesting schedule. Employer contributions are often subject to a graded vesting schedule. If a participant leaves before they’re fully vested, they forfeit the unvested portion. When dividing assets during divorce, it’s important to:

• Determine the vested versus unvested balance as of the division date
• Ensure the QDRO only divides the vested portion to avoid allocating benefits that later disappear
• Avoid speculative language about future vesting in the order

At PeacockQDROs, we pay close attention to this so that alternate payees get what they’re entitled to—and don’t lose benefits unexpectedly.

Many participants in plans like the Revlon Employees Savings, Investment, Profit Sharing Plan take loans against their accounts. This can create confusion when dividing the account. Here’s what to watch for:

• Loan balances reduce the transferable account value
• Some QDROs assign a percentage of the gross account balance, which may unintentionally reduce the alternate payee’s share if loans are not addressed properly
• A loan may or may not be assigned to the alternate payee depending on QDRO language

We always ask for current statements when preparing a QDRO, so we can account for loans properly and avoid unintentionally transferring debt.

The Revlon Employees Savings, Investment, Profit Sharing Plan may include both pre-tax (traditional) and post-tax (Roth) balances. This distinction impacts how distributions are taxed down the road. Your QDRO should:

• Clearly state whether each type of balance is being divided
• Match the percentage or dollar amount to each account type
• Ensure Roth funds go to a Roth-qualified account in the name of the alternate payee

This is easy to overlook—many generic QDRO forms don’t mention this at all. At PeacockQDROs, we custom-draft each order to cover all account types accurately.

If you’re the alternate payee or your attorney, you’ll need basic plan documentation. This includes:

• Summary Plan Description (SPD)
• Plan administrator contact info
• Recent account statements
• Loan documentation (if applicable)

Many times, we help our clients obtain this information through subpoenas or discovery requests during the divorce process.

The QDRO must be carefully tailored to the Revlon Employees Savings, Investment, Profit Sharing Plan. We use real plan documents and administrator guidance when drafting your order to avoid unnecessary rejection or revision.

Some plans allow or encourage pre-approval of a draft QDRO before filing it with the court. If the Revlon Employees Savings, Investment, Profit Sharing Plan allows this, PeacockQDROs takes care of sending the draft to the administrator and obtaining feedback before it’s finalized.

Once the draft is approved (or finalized if no preapproval exists), we handle court filing on your behalf. This is where most “QDRO mills” stop—we don’t. We ensure your order is filed promptly and accurately through the appropriate jurisdiction.

After the court signs the order, we submit the signed QDRO to the plan administrator and monitor its implementation. We follow up to confirm the account has been separated and the alternate payee’s share secured.