Employee and Employer Contributions
The total account balance can include both employee salary deferrals and employer matching or profit-sharing contributions. While employee contributions are usually always fully vested, employer contributions often come with a vesting schedule. That means the participant only earns full rights to those funds after a certain period of service with the company.
If you are the alternate payee, it’s crucial to know whether the portion you’re receiving includes only vested amounts or if it might exclude some unvested employer contributions. We always recommend clarity in the QDRO to protect both parties.

