Dividing Employee and Employer Contributions
401(k) accounts include two types of contributions:
- Employee contributions: The portion deducted directly from the employee’s paycheck.
- Employer contributions: Matches or other deposits made by the company.
Both of these amounts can be divided in a QDRO, but negotiators must be clear whether the former spouse (alternate payee) will receive a share of just the vested balance or the total including unvested employer contributions. Be aware: unvested amounts may be forfeited if the employee leaves before full vesting kicks in.

