Employee and Employer Contributions
401(k) plans typically include two types of contributions:
- Employee Contributions: The portion the employee elects to defer from salary
- Employer Contributions: Matching or profit-sharing contributions from the employer
While employee contributions are always 100% vested, employer contributions may be subject to a vesting schedule. That means the employee (and by extension, the ex-spouse) may not own the full amount until a certain number of years of service has been completed.
When we draft QDROs for the Huntington Theatre Company Inc.. Retirement Plan, we make sure to:
- Clearly separate the vested and unvested portions
- Prevent the inclusion of unvested funds that could be forfeited before payout
- Address whether gains and losses apply from the date of division to the date of distribution

