1. Employee vs. Employer Contributions
Most 401(k) plans include contributions from both the employee and employer. The employee’s contributions are fully vested immediately, but employer contributions may follow a vesting schedule based on years of service. A QDRO must clearly specify how both types of accounts will be divided.
- Only the vested portion of employer contributions is available for division.
- Unvested amounts typically remain with the original participant unless the plan’s rules state otherwise.

