Employee vs. Employer Contributions
In the Covered 6 LLC 401(k) Profit Sharing Plan & Trust, contributions can come from the employee, the employer, or both. During divorce, only the amounts earned during the marriage are considered marital property in most states. Your QDRO must clearly differentiate between:
- Employee elective deferrals (traditional or Roth)
- Employer matching or profit-sharing contributions
Both types may be divided, but an employer’s contributions are typically subject to a vesting schedule, meaning the employee doesn’t own them right away. If some employer contributions aren’t vested, they may eventually be forfeited, and the alternate payee may never receive those funds.

