1. Employee Contributions vs. Employer Contributions
If you’re drafting a QDRO for this plan, you’ll need to account for both:
- Employee Elective Deferrals: These are the amounts the participant elected to defer from their wages. These contributions and their earnings are usually 100% vested immediately.
- Employer Contributions: These may be subject to a vesting schedule. Meaning, the full amount may not be owed to the participant — and therefore not divisible — unless they meet service requirements.
It’s important for the QDRO to distinguish how much of the account balance is vested and whether the alternate payee is entitled to any portion of unvested employer funds.

