Opinion ID: 1057654
Heading Depth: 3
Heading Rank: 2

Heading: The Alcoa 401(k) Plan

Text: The parties agree that the Alcoa Savings Plan for Salaried Employees is a 401(k) plan. Although this Court has not previously considered this question, given our examination of the attributes of 401(k) plans and the individual accounts held by employees therein, we have no trouble concluding that Husband's and Wife's 401(k) accounts are retirement or other fringe benefit rights relating to employment under Tennessee Code Annotated section 36-4-121(b)(1)(B). [11] Clearly, the right to participate in a 401(k) plan is a right related to employment. Also, the plan is managed by the employer or its designee. Whether the right is considered one of retirement or one of other fringe benefit does not impact our conclusion. The right to participate in a 401(k) plan, if exercised, is also capable of accruing value over time beyond the parties' contributions, both through employer contributions and through investment gains. A spouse's 401(k) account therefore fits the (b)(1)(B) definition of marital property as a retirement or other fringe benefit right[] relating to employment. Whether the monies within the account are marital property or separate property depends on when they accrued, not how. See Franklin, 1995 WL 371573, at  (recognizing that, in assessing marital portion of retirement benefits, [t]he critical determination is whether the value `accrued' during the marriage).