Introduction
Dividing retirement assets like the Founders Brewing Company 401(k) Profit Sharing Plan during a divorce isn’t always straightforward. This 401(k) plan, sponsored by Canal street brewing Co.. LLC dba founders brewing company, includes unique components—such as employer contributions, vesting requirements, possible loan balances, and both Roth and traditional contributions—that need to be addressed with legal precision. That’s where a Qualified Domestic Relations Order (QDRO) comes in.
As QDRO attorneys at PeacockQDROs, we’ve handled thousands of retirement plan divisions, including employer-sponsored 401(k)s like this one. In this article, we’ll walk you through what you need to know about preparing and processing a QDRO specifically for the Founders Brewing Company 401(k) Profit Sharing Plan.
What Is a QDRO and Why It’s Required
A Qualified Domestic Relations Order (QDRO) is a court order that allows a retirement plan to pay benefits to a former spouse (known legally as the “alternate payee”) without triggering taxes or early withdrawal penalties. It’s required under federal law (ERISA) any time a retirement plan—like this 401(k) profit sharing plan—is divided in divorce.
Without a QDRO, the plan administrator for the Founders Brewing Company 401(k) Profit Sharing Plan legally cannot recognize or process a transfer of benefits to a non-employee spouse or former spouse. Your divorce settlement may specify how to divide the plan, but until there’s a signed court order, approved by the plan administrator, it means nothing to the plan itself.
Plan-Specific Details for the Founders Brewing Company 401(k) Profit Sharing Plan
Here’s what we know about the plan:
- Plan Name: Founders Brewing Company 401(k) Profit Sharing Plan
- Sponsor: Canal street brewing Co.. LLC dba founders brewing company
- Address: 235 Grandville Avenue SW
- Plan Type: 401(k) Profit Sharing (General Business)
- Organization Type: Business Entity
- Status: Active
- Effective Date: Unknown
- Plan Number and EIN: Will be required for your QDRO and must be obtained from the plan directly or your attorney
Because it’s a business-sponsored 401(k) plan, the QDRO process must consider common elements such as matching contributions, vesting schedules, in-plan Roth or traditional accounts, and outstanding loan balances. These variables can drastically impact what the alternate payee receives if the QDRO isn’t carefully worded.
Key QDRO Considerations for 401(k) Plans
Employer Contributions and Vesting
The employer—Canal street brewing Co.. LLC dba founders brewing company—may contribute additional funds to employee 401(k) accounts. However, these employer contributions are often subject to a vesting schedule. If your QDRO awards a percentage of the account but fails to address vesting, the alternate payee might end up with less than expected. Your QDRO should clearly state whether the award includes only vested amounts as of the division date or if future vesting is considered.
Loan Balances and Repayment
Loans are common in 401(k) plans, and they complicate QDRO drafting. If an account has an outstanding loan, it must be decided whether:
- The loan is to be excluded from the division
- The loan balance is assigned to the participant alone
- The balance is included and split proportionally
Loan treatment must be specified in the QDRO, or the plan administrator may reject it. Awards “including” loan balances could leave a former spouse with phantom assets unless the language is clear.
Roth vs. Traditional Contributions
The Founders Brewing Company 401(k) Profit Sharing Plan likely offers both traditional pre-tax contributions and Roth after-tax contributions. These must be allocated correctly in the QDRO. If not addressed, the alternate payee could receive part traditional and part Roth, which can affect future tax treatment. Ideally, the QDRO should distinguish the types and state how each component is to be divided.
Common QDRO Mistakes to Avoid
Many QDROs get rejected for issues that could be avoided with experienced guidance. These include:
- Failing to specify the division date, vesting treatment, or loan inclusion
- Using outdated plan names or missing sponsor information
- Confusing plan types (e.g., treating a profit-sharing 401(k) plan like a pension)
To avoid these kinds of errors and delays, see our guide on Common QDRO Mistakes.
The QDRO Approval Process for This Type of Plan
Because Canal street brewing Co.. LLC dba founders brewing company operates under a typical corporate (non-governmental) structure, its retirement plans are ERISA-governed. That means the Founders Brewing Company 401(k) Profit Sharing Plan must approve your QDRO before it becomes final.
The process typically includes:
- Preparing a draft QDRO using the correct plan and sponsor names
- Submitting the draft to the plan administrator for pre-approval (if available)
- Getting the QDRO signed by a judge in your divorce court
- Filing the court-approved QDRO with the plan administrator for implementation
Keep in mind—some plans offer model QDRO language, but it may not be tailored to your marital settlement. Always have an experienced QDRO attorney review or draft it to protect your share.
See our breakdown of what affects QDRO timelines here.
Why Choose PeacockQDROs
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 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. Whether you’re just getting divorced or trying to fix a QDRO years later, we’ve been there and know what it takes to get it right.
Learn more about our process at PeacockQDROs.com.
FAQs About the Founders Brewing Company 401(k) Profit Sharing Plan and QDROs
Q: Is the entire 401(k) account divisible, including employer contributions?
A: Only the vested portion of employer contributions is typically divisible unless your QDRO states otherwise. You’ll need to know the vesting schedule and what was earned during marriage.
Q: Can I receive cash from this plan through the QDRO?
A: Yes, if your QDRO allows for direct cash-out to the alternate payee, you can withdraw your full share after taxes. This avoids the 10% early withdrawal penalty.
Q: What happens if the employee took a loan?
A: The QDRO must say specifically whether the loan is considered part of the balance you’re dividing. If it’s ignored, it could reduce what you receive.
Q: Can Roth 401(k) amounts be split separately?
A: Yes, Roth and traditional balances need to be addressed individually, especially if one party is relying on tax-free Roth treatment during retirement.
Need Help with Your QDRO?
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 Founders Brewing Company 401(k) Profit Sharing 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.