Employee and Employer Contributions
401(k) profit sharing plans often have two types of contributions: salary deferrals made by the employee and profit sharing deposits made by the employer. Often, the employer deposits are subject to a vesting schedule.
In the QDRO, it’s important to clarify:
- The division percentage or fixed dollar amount
- Whether the order includes only vested employer contributions or all accrued amounts
- How forfeitures (unvested funds) are to be handled if the participant is not fully vested

