Employee vs. Employer Contributions
A common mistake in dividing a 401(k) is assuming all funds are created equal. They’re not. Generally, employee contributions are 100% vested immediately, but employer contributions may be subject to a vesting schedule. So if the plan participant hasn’t worked at Medic, Inc.. 401(k) plan for a long period, some of those employer-matched dollars might be forfeited—or only partially vested. We ensure that the QDRO properly reflects this detail so the alternate payee applies only for what they’re legally entitled to.

