1. Allocating Employee and Employer Contributions
401(k) plans usually include both employee and employer contributions. A QDRO can be structured to divide just the employee contributions, just the employer match, or both. The agreement between the divorcing spouses often determines this split.
However, employer contributions may be subject to a vesting schedule—meaning the employee doesn’t own the full amount unless they’ve met certain years of service. Unvested amounts are not payable to anyone, including the alternate payee. We’ll analyze the plan’s Summary Plan Description (SPD) and latest account statement to determine what portion of the account is eligible for division.

