Employee Contributions vs. Employer Contributions
401(k) accounts generally include two types of contributions:
- Employee Contributions: These are amounts deducted from the participant’s paycheck and are always 100% vested.
- Employer Contributions: These may be subject to a vesting schedule and may not belong to the participant entirely at the date of divorce.
When drafting your QDRO, it’s vital to clarify:
- Whether the alternate payee receives a share of just the vested employer portion or a percentage of all contributions made during marriage
- How unvested amounts will be treated—whether they’re forfeited or tracked separately for future distribution if they become vested

