Employee and Employer Contributions
401(k) retirement plans typically include both employee salary-deferred contributions and employer matching or profit-sharing contributions. A well-drafted QDRO for the I. K. Hofmann Usa, Inc.. 401(k) Profit Sharing Plan All Other Te needs to address both types:
- Employee Contributions: These are almost always 100% vested and can be divided based on a set percentage or specific dollar amount as of a particular date (the “Division Date”).
- Employer Contributions: These may be subject to a vesting schedule, which determines how much the employee actually owns after different lengths of service. The QDRO must specify how these partially vested or unvested amounts should be handled.

