Employee and Employer Contributions
401(k) plans include both employee contributions (your elective deferrals) and sometimes employer contributions (such as matching contributions). Proper QDRO language needs to specify whether both types of funds are being divided and how any unvested amounts will be handled.
If, for instance, your spouse isn’t fully vested in the employer’s match, the order must carefully state that only vested plans will be divided unless otherwise stated. Common options include:
- Dividing only vested balances as of the date of divorce
- Pending future distributions if additional vesting occurs (less common)

