1. Employee and Employer Contributions
This 401(k) plan likely includes both employee deferrals and employer matching or profit-sharing contributions. Here’s the catch: while employee contributions are always fully vested, employer contributions may be subject to a vesting schedule. If your divorce agreement splits the “entire account,” but some of it isn’t vested yet, the alternate payee may receive less than expected. The QDRO must clearly state whether the split includes only the vested portion or anticipates future vesting.

