Employee vs. Employer Contributions
In most 401(k) plans, the account includes both employee contributions (the money the plan participant consciously contributes from their paycheck) and employer contributions (matching or discretionary contributions from the employer).
The employee’s contributions and earnings are always fully vested and can be divided by the QDRO. However, employer contributions may be subject to a vesting schedule, which could leave the alternate payee (former spouse) with less than anticipated if the participant isn’t fully vested at the time of divorce. Your QDRO must make this distinction clear—and note whether unvested employer funds are to be excluded.

