Employee and Employer Contributions
In a 401(k) plan, the account typically consists of employee deferrals and employer matching or profit-sharing contributions. While employee contributions are always immediately vested, employer contributions may be subject to a vesting schedule. In a divorce, only the vested portion is eligible for division under a QDRO.
Be sure your QDRO addresses tax treatment and specifies whether the alternate payee is receiving a fixed dollar amount or a percentage of the account. It’s also important to set the valuation date based on a specific event—often the date of separation, date of divorce, or date the order is signed.

