Employee and Employer Contributions
401(k) plans are made up of employee deferrals—money the participant put in—and employer matching contributions. The employee contributions are always fully vested and divisible. However, employer contributions may be subject to a vesting schedule.
In the context of the The Florida Brewery, Inc.. 401(k) Plan, if the participant spouse has not met the full vesting requirements, some of the employer contributions may not be available for division. This unvested portion frequently becomes forfeited upon employment termination. A well-drafted QDRO will state that the alternate payee’s portion is limited to the vested account balance as of the date chosen for division (often the date of separation or divorce).

