Introduction
If you’re going through a divorce and either you or your spouse has a retirement account under the Waterfall Asset Management LLC Cash Balance Plan, it’s important to understand how those retirement assets can be divided. Like many 401(k)-style plans, this one requires special handling to ensure the division is legally recognized. That’s where a Qualified Domestic Relations Order (QDRO) comes in. A QDRO legally directs the retirement plan administrator on how to divide the plan between divorcing spouses.
In this article, we’ll explain how QDROs work specifically for the Waterfall Asset Management LLC Cash Balance Plan and what you need to look out for—like contribution types, vesting schedules, loan balances, and Roth distinctions.
Plan-Specific Details for the Waterfall Asset Management LLC Cash Balance Plan
Here’s what we know about the plan you’ll be dealing with in your QDRO:
- Plan Name: Waterfall Asset Management LLC Cash Balance Plan
- Sponsor: Waterfall asset management LLC cash balance plan
- Industry: General Business
- Organization Type: Business Entity
- Address: 1251 Avenue of the Americas, New York, NY (plan uses plan administrator code: 1A1C3B)
- EIN: Unknown (you will need to obtain this from the plan administrator when submitting a QDRO)
- Plan Number: Unknown (also required for QDRO submission)
- Status: Active
- Effective Dates: Active between 2017-01-01 through at least plan year 2024
- Plan Year: 2024-01-01 to 2024-12-31 (current plan year as of this writing)
- Assets: Unknown (must be requested at time of division)
- Participants: Unknown
What Makes Dividing a 401(k)-Style Plan Different?
The Waterfall Asset Management LLC Cash Balance Plan is structured like a 401(k), which means it can contain a mix of contributions: employee elective deferrals, employer contributions, and sometimes earnings on both. Unlike pension plans, which pay a monthly benefit, cash balance and 401(k)-style plans offer a lump-sum value—usually in an account format.
But 401(k) plans come with some tricky details: loan balances, possibly unvested employer contributions, and separate Roth and traditional sources that can’t be lumped together. That’s why a boilerplate QDRO won’t work. Your order must speak the language of this specific plan.
Dividing Contributions: Employee vs. Employer
Employee Contributions
These are the easiest type to divide in a QDRO. Employee elective deferrals (traditional or Roth) are usually 100% vested. That means they belong to the employee from day one and should be fairly allocated based on the marital timeline.
Employer Contributions
This is where it gets complicated. Employer contributions might only partially belong to the employee (and thus the marriage) depending on the plan’s vesting schedule. You may be entitled to a percentage of those employer contributions made during the marriage, but only what is vested on the date of divorce or QDRO submission qualifies for division.
If your spouse had 60% vesting at the time of divorce, only 60% of any employer contribution made during the marriage can be divided. The rest is forfeited to the plan if unvested—it cannot be assigned to an alternate payee.
Loan Balances in the Waterfall Asset Management LLC Cash Balance Plan
If your spouse took out a loan against the Waterfall Asset Management LLC Cash Balance Plan, your share of the account might be reduced. You’ll need to decide how to handle the outstanding loan:
- Exclude the loan from the division, placing the debt solely on the participant
- Divide the account with the loan balance accounted for in your percentage
Most QDROs assign loan repayment responsibility to the plan participant. Your attorney or QDRO preparer will need to write this language clearly to avoid disputes later.
Dealing with Roth vs. Traditional Balances
Many modern 401(k) plans include both Roth and traditional sources. These need to be divided separately in the QDRO. Transfers from the Roth portion must stay Roth, and traditional must stay traditional. You can’t blend or reassign them.
If your QDRO doesn’t distinguish between these account types, the plan administrator may reject it. At PeacockQDROs, we always request a source breakdown before drafting to ensure we allocate each piece correctly.
Vesting Schedule Issues with 401(k) Accounts
The vesting schedule for the Waterfall Asset Management LLC Cash Balance Plan isn’t publicly available, so you’ll need to obtain it from the plan administrator. Most 401(k) plans use something like a 5-year graded (20% per year) or 3-year cliff vesting. The QDRO should only divide what’s vested, unless the plan permits something different.
Pre-approval is helpful here—submitting a draft QDRO for review ensures compliance with the plan’s vesting and account division rules before you file it with the court.
The QDRO Process for the Waterfall Asset Management LLC Cash Balance Plan
Here’s how the process typically works when dividing this plan during divorce:
- Request plan documents from the employer/administrator to learn their specific QDRO requirements.
- Get a breakdown of vested vs. unvested funds, contribution types, and loan balances.
- Draft a detailed QDRO that includes accurate percentage or dollar amounts, distinction between account sources, and clear loan instructions.
- Submit the draft to the plan administrator for preapproval (if allowed).
- File the signed order with your family court.
- Send the court-certified QDRO to the plan administrator for final implementation.
Common Mistakes to Avoid
Incorrectly dividing Roth vs. traditional sources or failing to handle loan responsibilities properly are two of the most frequent QDRO errors in 401(k) cases. Learn more on our primer: Common QDRO Mistakes.
Another mistake? Handing off the QDRO to your family law attorney or trying to do it yourself. Most family lawyers aren’t QDRO specialists. And if you don’t follow the plan-specific rules, your order could be rejected—delaying the division by months.
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 the drafting, preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only prepare the document and hand it off to you. We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way.
Want to know how long a QDRO takes? Read our guide to the 5 Factors That Determine How Long a QDRO Takes.
Conclusion
If the Waterfall Asset Management LLC Cash Balance Plan is part of your divorce, don’t treat it like any generic 401(k). It comes with plan-specific rules, and you must consider issues like unvested employer contributions, loan balances, and Roth components. A proper QDRO protects your right to retirement funds and avoids costly delays or rejections.
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 Waterfall Asset Management LLC Cash Balance 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.