Employee vs. Employer Contributions
Most 401(k) plans, including the Hoffman Media, LLC 401(k) Plan, are composed of two parts — the employee’s own salary deferrals and employer contributions (like matching or profit-sharing).
When dividing the account, it’s important to understand:
- Vested vs. unvested employer contributions — Unvested portions may be forfeited if the employee leaves the company before a certain number of years.
- Whether to divide based on a flat percentage of total balance or a dollar-specific award — both options come with pros and cons depending on timing and market fluctuations.

