Employee vs. Employer Contributions
401(k) plans typically contain both employee contributions (from the participant’s paycheck) and employer contributions (such as matching or profit-sharing). In many plans, employer contributions are subject to a vesting schedule.
- Employee Contributions: These funds are 100% vested and thus fully divisible in divorce.
- Employer Contributions: These may still be vesting. Only the vested portion at the time of divorce (or date specified in the order) can be divided with the alternate payee.
If the divorce settlement includes a share of employer contributions, it’s crucial to verify which portion is actually vested. We often coordinate with the administrator of the Avevorx & Mid-valley Health Services 401(k) Plan to determine exact vesting percentages before drafting the QDRO.

