1. Contributions: Employee vs. Employer
In most 401(k) Profit Sharing plans, contributions come from both the employee and employer. The employee contributions are always 100% vested, but employer contributions may be subject to a vesting schedule.
- Only vested employer contributions can be divided in a QDRO.
- Unvested amounts may be forfeited if the participant spouse separates from employment before reaching the required years of service.
- The QDRO should specify that it only covers vested funds to avoid conflict with the plan administrator.

