1. Dividing Employee and Employer Contributions
The Sunrise Family Farms Inc. 401(k) Profit Sharing Plan & Trust likely includes both employee deferrals and employer contributions. Employee deferrals are always 100% vested, but employer contributions may be subject to a vesting schedule.
Your QDRO must clearly state whether the alternate payee is receiving:
- A flat dollar amount
- A percentage of the total account
- A percentage as of a specific valuation date
It should also clarify whether the division includes only vested contributions or also any unvested balances that may become vested later. This is critical in profit-sharing plans, where employer contributions may not fully vest until several years of service.

