1. Employee vs. Employer Contributions
In most 401(k) plans, both the employee and the employer contribute. The employee’s contributions are always 100% vested, meaning they belong fully to that employee. However, employer contributions may be subject to a vesting schedule. That means the employee must work a certain number of years to earn the right to keep those funds.
If your QDRO includes a share of employer contributions under the Link Engineering Company Tax Deferred Savings plan-401(k), make sure to:
- Specify whether only vested amounts are to be divided
- Identify the portion that may be forfeited post-divorce if not yet vested
- Consider using a “coverture” or “percentage” formula to account for any future changes in vesting

