Employee vs. Employer Contributions
401(k) plans typically include both employee contributions (voluntary deferrals) and employer matching or profit-sharing contributions. In the 5800 Uplander Way plan, employer contributions are likely subject to a vesting schedule. Only the vested portion can be divided under a QDRO at the time the account is split.
Be sure your QDRO addresses:
- What percentage of employer contributions were vested as of the date of division
- How to treat unvested funds (some plans forfeit the non-vested portion)
- Whether the split is based on the account balance as of a specific date or defined as a fixed dollar amount or percentage

