Employee vs. Employer Contributions
401(k) plans typically contain different contribution types:
- Employee contributions: Typically 100% vested immediately and available for division.
- Employer contributions: Often subject to a vesting schedule. Only the vested portion is divisible via QDRO.
If only part of the employer’s contributions are vested, the unvested portion will not be transferred to the alternate payee, and that value could be lost completely depending on employment status at time of QDRO execution. Always confirm current vesting percentages before finalizing the QDRO.

