Understanding Employee vs. Employer Contributions
401(k) accounts usually include:
- Employee salary deferral contributions (always 100% vested)
- Employer matching or discretionary contributions (often subject to a vesting schedule)
When dividing the account, it’s important to know whether employer contributions are fully vested. Unvested employer contributions can’t be assigned to the former spouse (also known as the “alternate payee”). The QDRO should clearly state the cut-off date for determining what’s divided—typically the date of divorce or separation, depending on the settlement agreement.

