Dividing Employee and Employer Contributions
Most 401(k) accounts are made up of two funding sources: employee contributions (voluntary deferrals from wages) and employer contributions (matching or profit sharing). For the Sigma Connectivity Inc.., 401(k) Plan, it’s essential to specify whether the alternate payee (usually the former spouse) is receiving a portion of just the employee’s contributions, or all contributions.
Pro tip: Make sure the QDRO includes language about the allocation of gains or losses between the separation date and the distribution date. Otherwise, disputes can arise over market fluctuations that significantly change the value of the account.

