Employee and Employer Contributions
The Dueall Construction, Inc.. 401(k) Profit Sharing Plan likely includes both employee salary deferrals and employer contributions. When dividing the plan in a divorce, both of these account types must be considered.
- Employee Contributions: These are typically 100% vested immediately and easily divisible.
- Employer Contributions: Often subject to a vesting schedule, which must be reviewed. Only the vested portion can be awarded to the alternate payee.
If any contributions are forfeited due to vesting rules, that portion of the account cannot be divided, and the QDRO should include fallback language to protect the alternate payee’s share.

