1. Employee vs. Employer Contributions
One of the most important QDRO issues in a 401(k) plan is how to split employee deferrals from employer contributions. The Mwg Holdings Group, Inc.. 401(k) Plan likely includes both types of contributions:
- Employee Contributions: These are normally fully vested and easier to divide in a QDRO.
- Employer Contributions: May be subject to a vesting schedule. Only vested portions can be divided. Unvested amounts usually remain with the employee participant.
The QDRO should specify clearly whether the alternate payee receives a portion of the total balance or only of vested funds as of a specific date.

