Employee vs. Employer Contributions
A typical 401(k) plan like the Alpha Transport, Inc.. 401(k) Profit Sharing Plan includes both employee contributions (money taken from wages) and employer contributions (the “profit sharing” part). A QDRO can divide the total account value or just the marital portion, but it’s critical to specify whether the alternate payee is getting a share of:
- Only employee contributions
- Both employee and employer contributions
- Only vested employer contributions
Most plans only allow division of vested funds. If the employee isn’t yet fully vested in the employer’s match, the non-employee spouse may receive less than expected.

