Employee vs. Employer Contributions
The QDRO should clearly indicate whether the division includes both the participant’s contributions (which are always fully vested) and employer contributions (which may or may not be fully vested). For example:
- Employee deferrals are always 100% vested and divisible
- Employer matching or profit-sharing may be subject to a vesting schedule
If the alternate payee is awarded a percentage of the total account, make sure it applies only to vested amounts unless you specifically agree otherwise. The draft should also state how to handle forfeitures due to vesting concerns.

