Employee vs. Employer Contributions
401(k) plans typically consist of elective deferrals (employee contributions) and employer contributions or matches. Each of these can be divided in a QDRO, but they may be subject to different rules. Employer contributions are often subject to a vesting schedule. If the employee spouse isn’t yet fully vested, the non-employee spouse may not be entitled to the full employer match.
Make sure your QDRO accounts for:
- What portion of the plan is vested
- Whether unvested funds should be excluded from the marital portion
- If restricted, how forfeitures may affect the award amount

