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Sorry RSmith, but this is just the wrong place to be trying to get an answer to your situation. Your statement of the facts is very confusing so we really don't have all the information that is needed. More importantly, you need a competent advisor (whether an ERISA attorney who thoroughly understands QDROs or an attorney who has someone - like me or any other competent QDRO person - in tow to help figure out your situation). Whatever is said here, we just don't have the detailed understanding of the situation; free advice is worth ever penny you pay for it, but in this case, you need competent and specific advice and for that, I'm afraid, you are going to have to find competent personal advisors and not an anonymous web site. Best of luck; QDROs can be quite complicated because of the lawyers and judges involved who just don't know what they are doing when they decide how something should be divided that can't be divided the way they decided to divide it!

I assumed that requiring the benefit to be at contract value would be "conditioned, limited or restricted" if the value of the asset dispersed from investment was different (less than) than the value of the investment while it was still held for investment. For example a term such as you must hold onto this investment for 24 months otherwise you get paid out 99.5% of the contract value. So I would think the 20% annual transfer of accumulation value in this case would not be a condition, limit or a restriction because the assets held for investment will always equal the amounts disbursed upon the election of the participants. I could be wrong. CPE for retirement related topics always pop up in the spring. I would check the AICPA or your state's CPA society to see if they offer anything along these lines.

well, you never know. maybe not the most creative... the best one I came up with years ago... was asked to run a rare pre lim ADP test - must have been Oct or something. one NHCE who was deferring the max had projected comp of 120,000.07. of course that was 7 cents more than HCE comp limit at the time. I told them I don't care what happens, if the guy finds 10 pennies sitting on his desk one morning before the end of the year and by chance a pay check which was 10 cents less than normal, well, those things happen. you don't want to mess up next years test!

That's true, as is the case for all contributions; the plan terms will control how they are treated. But, if you want to get those amounts 'credited' as fulfilling the prevailing wage contract, then certain items must be in place. For instance, in order for a contribution to be used to satisfy prevailing wage, it must be 100% vested. So, if you have a Profit Sharing into an account that is not 100% vested, then it's a no-go (unless you create a separate account that is). You can even label the separate account 'Prevailing Wage" and make it 100% vested. You have two distinct equations and are working simultaneously: 1) the plan's operations and 2) the prevailing wage required contributions. All you're doing is ensuring that dollars deposited meet both. Good Luck!