1. Vesting Schedules: What Happens to Unvested Employer Contributions?
401(k) plans like the Middlesex Glass Company Retirement Plan often include employer matching funds that are subject to a vesting schedule. If the employee (your former spouse) hasn’t worked long enough to become fully vested, some or all of those employer contributions may be forfeited upon leaving the company.
Only fully vested employer contributions can be divided in a QDRO. This means the alternate payee might receive less than half of the total plan balance depending on vesting status. Ask the administrator for a vesting schedule and current vesting statement when drafting your QDRO.

