Employee and Employer Contributions
The typical 401(k) includes:
- Employee deferrals: Money the employee has elected to contribute from their paycheck
- Employer matching or profit-sharing contributions: Added by the plan sponsor, often conditioned on a vesting schedule
A QDRO can divide either or both types of funds. However, if the participant is not fully vested in the employer portion at the time of divorce, only the vested share may be awarded to an alternate payee. It’s crucial not to assume the total account value is all divisible.

