Employee vs. Employer Contributions
In many cases, employee contributions are considered 100% vested at the time they’re made. However, employer contributions—like matching funds—may follow a vesting schedule. QDROs need to account for:
- What percentage of employer contributions are vested at the date of separation or divorce
- Whether the court order is awarding both vested and unvested amounts
- Consequences of unvested funds becoming forfeited before full vesting
Because we don’t yet know the vesting rules for the Team Vance Management, LLC 401(k) Plan, it’s essential that your QDRO carefully includes language that protects the alternate payee’s interest in all vested portions—and addresses how forfeitures will be handled.

