Introduction
Dividing retirement assets can be one of the most complex and emotionally charged parts of a divorce. If you or your spouse participated in the Proper Food 401(k) Plan, you’ll need a specific legal document called a Qualified Domestic Relations Order (QDRO) to divide the account properly. A QDRO ensures that the non-participant spouse—the “alternate payee”—receives their share of the retirement funds without triggering early withdrawal penalties or taxation (when transferred into another retirement account).
In this article, we’ll walk through how to structure a QDRO specifically for the Proper Food 401(k) Plan sponsored by Properfood LLC. We’ll touch on the nuances that matter most, including employer contributions, loan balances, Roth versus traditional 401(k) funds, and what documents you’ll need to get started.
Plan-Specific Details for the Proper Food 401(k) Plan
Here are the known details for the Proper Food 401(k) Plan as of the latest available public information:
- Plan Name: Proper Food 401(k) Plan
- Sponsor: Properfood LLC
- Address: 20250606081134NAL0009764723001, effective January 1, 2024
- Employer Identification Number (EIN): Unknown (will be required for QDRO)
- Plan Number: Unknown (also required for QDRO)
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
The unknowns—such as participant count, plan year range, and total assets—don’t stand in your way of pursuing a QDRO, but collecting updated plan documents and account statements is essential to draft an accurate order. At PeacockQDROs, we can guide you through requesting this information from the plan administrator.
Why You Need a QDRO for the Proper Food 401(k) Plan
Without a properly executed QDRO, the alternate payee cannot legally receive any portion of the 401(k) funds. A QDRO allows the court-ordered division to be carried out without tax consequences if done correctly. Since the Proper Food 401(k) Plan is an employer-sponsored retirement plan governed by ERISA (the Employee Retirement Income Security Act), a QDRO is the only legal mechanism that permits the division.
Key Elements to Consider When Dividing the Proper Food 401(k) Plan
1. Employee vs. Employer Contributions
The account likely includes both employee deferrals (pre-tax or Roth) and employer matching or profit-sharing contributions from Properfood LLC. Only vested employer contributions are subject to division in a QDRO. You’ll need to review the plan’s vesting schedule to determine how much is includable.
For example, if the participant has worked at Properfood LLC for three years, and the vesting schedule is five years for full ownership of employer contributions, not all employer amounts may be divisible. This must be reflected in the QDRO language.
2. Vesting Schedules and Forfeitures
Any employer contributions not yet vested at the time of divorce may not be awarded to the alternate payee. A well-drafted QDRO will clarify whether the alternate payee will share in future vesting or only receives already-vested sums as of a particular date (commonly the date of separation or divorce filing).
Failing to address vesting can result in disputes or plan rejection of the order. That’s why we make sure the language lines up with the plan’s internal rules before it ever reaches the court.
3. Roth vs. Traditional 401(k) Accounts
It’s increasingly common for participants to have both traditional and Roth components within the same 401(k) plan. Traditional funds are taxed upon withdrawal, while Roth 401(k) funds are post-tax and grow tax-free.
The QDRO must specify how each component is divided. If not, the plan might default to a pro-rata division of all sub-accounts. This can be problematic depending on the parties’ tax needs and future plans. At PeacockQDROs, we ensure each type of 401(k) money is precisely accounted for in the order.
4. Outstanding Loan Balances
If the participant spouse has a loan against their 401(k), that amount reduces their account balance. The QDRO must decide whether the loan is excluded from the divisible balance or shared as part of the account’s value.
For instance, if the account has $50,000 but a $10,000 loan balance, the true net value is $40,000. Ignoring the loan could mean one party gets less than intended. This is one of the most common QDRO mistakes we see—one we help our clients avoid every day.
See other frequent pitfalls here: Common QDRO Mistakes.
Required Information for a QDRO Submission
Before a QDRO can be drafted and submitted, you’ll need:
- Participant and alternate payee’s full legal names and addresses
- Exact plan name: Proper Food 401(k) Plan
- Plan sponsor: Properfood LLC
- Employer’s EIN and plan number
- Copy of the plan’s Summary Plan Description (SPD) or QDRO procedures
- Most recent account statement showing current balances, outstanding loans, and vesting percentages
We help you gather this documentation so the court and plan administrator have everything they need—and there are no delays from missing info.
What the Division Can Look Like
Each divorce is unique. Common division structures include:
- Percentage-based: The alternate payee receives 50% of the marital portion of the account as of a specified date.
- Dollar amount: A set amount (e.g., $25,000) is transferred to the alternate payee, subject to available vested balance.
- Marital coverture: Proportional share based on the time the account was accumulated during the marriage.
A custom strategy ensures the outcome aligns with the divorce judgment and any financial planning goals. We work closely with you to choose the right format.
Timelines and What to Expect
The QDRO process isn’t instant. See how long it can take: 5 Key Timeline Factors.
At PeacockQDROs, our process includes:
- Initial review of your divorce judgment or agreement
- Drafting the QDRO
- Submitting it to the plan administrator for preapproval (if allowed)
- Getting the court to sign the order
- Filing the signed QDRO with the plan administrator
- Following up until the benefits are properly distributed
We take pride in handling every step—not just handing you a draft and wishing you luck. That’s why so many clients prefer working with us over QDRO-only drafters who leave the court filings and plan submissions up to you.
Learn how we can help you from start to finish.
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 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 the first time. Whether your divorce was simple or complex, we’re ready to help you make sure the Proper Food 401(k) Plan is divided correctly.
Final Thoughts
A QDRO for the Proper Food 401(k) Plan requires close attention to contributions, vesting, loan balances, and account types. Getting it right impacts your financial future. With the right assistance, the process doesn’t have to be intimidating—and we’re here to help.
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 Proper Food 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.