Dividing Employee and Employer Contributions
Most 401(k)s, including the Allmark Door Company 401(k) Plan, consist of two types of contributions: employee deferrals and employer matches or profit-sharing. In divorce, you need to determine whether the non-employee spouse (Alternate Payee) will receive a portion of:
- All contributions made during the marriage
- Just employee deferrals?
- Or also employer contributions?
This is especially important because employer contributions are often subject to a vesting schedule. If the employee spouse isn’t fully vested in the employer portion, those funds may not be divided—or may be forfeited if the employee terminates employment soon after the divorce. Your QDRO should address these forfeiture risks clearly.

