Employee and Employer Contributions
401(k) plans typically include both employee deferrals and employer matching or profit-sharing contributions. When drafting a QDRO, it’s important to address both types of funds clearly.
- Employee contributions are always fully vested and available for division under a QDRO.
- Employer contributions are often subject to a vesting schedule. If the employee (or “participant”) hasn’t met the vesting criteria, some of the employer-funded portion may not be divisible.
The QDRO should clearly specify whether it covers only vested amounts or includes a right to future vesting.

