Employee and Employer Contributions
401(k) plans contain two types of contributions:
- Employee contributions: These are always 100% vested and can generally be divided without issue.
- Employer contributions: These may be subject to a vesting schedule. That means your share as an alternate payee may only include the vested portion available as of the divorce date or defined distribution date.
Make sure your QDRO identifies the correct valuation date and addresses whether unvested employer contributions should be excluded. We account for that in all our QDRO drafts.

