Vested amount

CaptainForest · Jan 10, 2006, 08:43 PM

According to: http://www.401kfocus.com/401k_questions.html

What does vesting mean?

The "vested" portion of your 401k account is the part that is yours and that cannot be forfeited. To better understand, consider that there are two types of 401k contributions: the contributions you make and the contributions your employer makes (such as "matching" contributions).

The money you contribute to the plan is always 100% vested. In other words, whatever money you put into the plan, adjusted for any gains or losses, is always 100% yours.

The money your employer contributes, however, may be subject to a vesting requirement. Vesting requirements are very common in 401k plans and simply mean that you must earn your employer's contribution over time. For example, if you have only worked for the company for three years, which equals 40% vested under your plan's vesting schedule, you would only be entitled to $40 of every $100 contributed by your employer.

Vested amount

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