Employee vs. Employer Contributions
The D’allessandro Corp.. 401(k) Profit Sharing Plan may include both employee deferrals and employer profit-sharing contributions. In QDRO terms, these two types of contributions matter for one big reason: vesting.
- Employee contributions are always 100% vested and subject to division.
- Employer contributions may be subject to a vesting schedule—and nonvested amounts aren’t available to divide.
If your QDRO doesn’t specify whether it covers just vested contributions or attempts to divide nonvested amounts too, it may be rejected by the plan—or worse, your client may lose out on money they believed they were getting.

