Employee Contributions vs. Employer Contributions
The S.w. Anderson Company Savings Plan and Trust is a 401(k) plan, meaning it likely includes both employee deferrals and employer contributions (such as matching funds or profit-sharing). A well-drafted QDRO should account for both types:
- Employee deferrals: The portion the employee contributed from their paycheck—this is always 100% vested.
- Employer contributions: These may be subject to a vesting schedule and could be partially forfeited if the employee leaves the company before becoming fully vested.
It’s important that your QDRO specifies whether the award includes only vested amounts or both vested and nonvested balances. Many plans, including those in the general business sector like this one, only divide the vested portion.

