Employee vs. Employer Contributions
401(k) balances typically include two types of contributions: employee deferrals and employer matching contributions. Only vested employer contributions can be awarded through a QDRO. The vesting schedule is crucial—many plans use graduated vesting, such as 20% per year over five years.
- If your spouse hasn’t worked long enough to vest fully, a portion of those employer contributions could be off the table.
- Be sure the QDRO clearly defines whether the former spouse is receiving a percentage of the total vested balance or just the marital portion accrued during the marriage.

