Employee Contributions vs. Employer Contributions
401(k) accounts generally consist of two main types of deposits: employee deferrals and employer contributions (often matching funds or profit-sharing). In divorce, both types may be divided, but only vested employer contributions can be transferred to a spouse.
If you’re the Alternate Payee, be aware that only the vested portions are yours under a QDRO. Unvested portions may be forfeited if the participant leaves employment ahead of schedule. The employer’s vesting schedule should be part of your due diligence when drafting the QDRO.

