1. Employee and Employer Contributions
401(k) accounts usually include two types of contributions: those put in by the employee (typically 100% vested), and those made by the employer, which may be subject to a vesting schedule. For example, an employer might require five years of service before contributions are fully vested.
In a divorce, the QDRO must distinguish between vested and non-vested employer contributions at the time of division. Generally, only vested portions are divided. If the employee hasn’t met the full vesting schedule, the non-vested amounts won’t go to the alternate payee, even if the marital judgment says otherwise.

