Employee vs. Employer Contributions
The participant’s deferrals and the employer’s contributions often follow different rules. In many corporate plans, only portions of employer contributions are “vested.” The QDRO should clearly state whether the alternate payee (usually the ex-spouse) is entitled to:
- Employee contributions only
- Employer contributions that are vested at the time of divorce
- Any employer contributions that vest after divorce
This can seriously affect the final amount transferred, so make sure your QDRO specifies what’s included.

