Employee vs. Employer Contributions
Employee contributions are considered the participant’s own deferrals and typically 100% vested. These amounts are usually eligible for immediate division. However, employer contributions—especially profit-sharing or matching funds—are often subject to a vesting schedule. That means some of those contributions may still be unvested at the time of divorce.
When drafting the QDRO, it’s critical to:
- Verify each contribution type on the account statement
- Request a breakdown of current vested vs. unvested balances
- Clearly state whether only the vested portion or both vested and future-vested amounts are to be divided

