1. Employee and Employer Contributions
Many 401(k) plans, including profit-sharing plans, include both employee salary deferrals and employer matching or profit-sharing contributions. The QDRO must clearly state whether the alternate payee is receiving a share of all contributions or just the vested portion of them.
- Employee contributions are typically 100% vested immediately and often divided based on a marital cut-off date.
- Employer contributions may be subject to a vesting schedule, which could affect how much the alternate payee receives.

