Employee and Employer Contributions
In dividing the Admiral Staffing Inc. 401(k) Profit Sharing Plan & Trust, it’s important to distinguish between what the employee contributed and what was contributed by the employer. These need to be handled differently, especially when employer contributions are unvested.
- Employee Contributions are always 100% vested and are usually divided based on a specific percentage or fixed dollar amount as of a certain date (commonly the “Date of Divorce” or “Date of Separation”).
- Employer Contributions might not be fully vested at the time the order is prepared. If you try to divide unvested funds, that portion may be forfeited before distribution, meaning the alternate payee receives less than expected.

