Employee vs. Employer Contributions
One of the most important aspects of a QDRO for this plan is how the order deals with different types of contributions:
- Employee Contributions: These are usually 100% vested immediately. If the participant made direct contributions from their paycheck during marriage, the QDRO can divide the balance as of a specific date (commonly the divorce or separation date).
- Employer Contributions: These may be subject to a vesting schedule. This means not all of the employer’s contributions may be considered marital property or available to the alternate payee. It’s critical to examine the plan’s vesting rules before drafting the QDRO.

