1. Employee and Employer Contributions
401(k) accounts contain employee deferrals (the portion the employee contributes) and employer contributions (which might be matching or profit-sharing). Some employer contributions are subject to vesting schedules—meaning, the employee only owns a portion based on time of service.
If a spouse is awarded a share of the account, the QDRO should clearly state whether that includes both vested and unvested amounts. For the Travis Companies, Inc.. 401(k) Plan, we recommend limiting awards to vested contributions unless both parties specifically agree otherwise.

