Employee and Employer Contributions
401(k) plans typically include both employee deferrals (what the employee contributes from their paycheck) and employer matching or profit-sharing contributions. During a divorce, the QDRO needs to specify whether both types of contributions should be divided and what portion each party is entitled to receive.
Make sure your QDRO includes:
- Clear language stating what portion of the participant’s account the alternate payee receives
- Whether the division includes just vested funds or also future vesting tied to pre-divorce service

