Vested vs. Non-Vested Funds
Most 401(k) plans have vesting schedules that apply only to employer contributions. If your spouse has employer contributions that are not yet vested at the time of the divorce, those funds may be forfeited if the employee terminates before becoming fully vested. It’s critical to determine:
- The vesting status of the employer contributions as of the agreed-upon division date
- Whether the QDRO should allocate only vested amounts or include a method for future vesting, such as a “shared interest” approach

