1. Dividing Participant vs. Employer Contributions
One of the initial steps is identifying how much of the 401(k) is up for division. Contributions to a 401(k) come from two sources:
- Employee Contributions: These are always 100% vested and divisible in divorce
- Employer Contributions: Often subject to a vesting schedule, meaning only a portion may be divisible depending on years of service at Touch of color flooring, Inc.. 401(k) plan
When drafting your QDRO, it’s important to specify whether the order divides the full account balance or only the vested portion. We often consult the plan’s Summary Plan Description to make sure the division is fair and compliant.

