Employee vs. Employer Contributions
401(k) plans are made up of two types of contributions:
- Employee Contributions: These are always 100% vested and available for division via QDRO.
- Employer Contributions: These frequently include a vesting schedule. Any unvested portion at the time of divorce or QDRO approval will not be available to the alternate payee and may be forfeited if the employee leaves the company.
It’s vital to determine what part of the employer contributions are vested as of your chosen division date. Make sure your QDRO doesn’t over-allocate funds that may never vest.

