1. Employee and Employer Contribution Division
One of the most common mistakes in dividing a 401(k) is overlooking that the account includes both employee and employer contributions. In the Redishred Acquisition Inc. 401(k) Plan, you must determine:
- Whether the alternate payee is entitled to the full account balance or only the marital portion
- Whether employer contributions are vested and included in the division
Only vested employer contributions can be divided, unless the parties agree differently and the employee later becomes vested. Importantly, the division can be expressed as a dollar amount or a percentage as of a certain date (usually the date of separation or divorce).

