1. Employee and Employer Contributions
401(k) plans often include both employee deferrals and employer contributions. In many cases, employer contributions are subject to a vesting schedule—meaning the participant earns full ownership of those amounts over time. When preparing a QDRO for this plan, it’s critically important to separate out what’s vested versus what’s not. Only vested amounts can be divided in the QDRO.
Also remember: a QDRO can divide both pre-tax and Roth employee contributions, but the handling of earnings, losses, and distribution timing must be clear.

