1. Employee and Employer Contributions
One of the first questions we ask clients is whether the participant’s employer has made matching or profit-sharing contributions. In 401(k) plans like the B & B Airparts, Inc.. 401(k) Plan, those employer contributions are often subject to a vesting schedule.
Only the vested portion of the account can be divided in the QDRO. That means your QDRO must clearly state that only “vested” employer contributions as of the date of divorce (or another agreed-upon date) are to be divided. Any unvested amounts that later become vested usually remain outside the alternate payee’s share—unless specifically negotiated otherwise.

