Ask Experts Questions for FREE Help !
Ask
    ecrovid's Avatar
    ecrovid Posts: 12, Reputation: 1
    New Member
    		  
    #1

    Jan 10, 2006, 05:59 PM
    Vested amount
    Friends, just need some clarification on some financial speak. What is vested amount in reference to a balance on a 401K statement? Thanks?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Jan 10, 2006, 09:43 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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Amount, Volume, and Concentration [ 2 Answers ]

You are given a container with 5 mL of a solution containing 5.1 ×10^3 cells/mL. You are to produce a solution that contains approximately 100 cells/mL. I really need help solving this problem, it's a serial dilutions problem, but I'm confused about solving it!

Child support. How do they figure the amount? [ 2 Answers ]

I have insurance through the state (wi). My child support will be set at 17%. I am wondering if they figure out an average from past checks or if it is 17% of whatever he is making at the time.

Help with calculating amount of Fe [ 2 Answers ]

I did an experiment involving the gravimetric determination of Iron in Geritol. At the end of the experiment I was left with a product, Fe2O3 that weighed 0.417 g I'm not sure how to calculate the amount of Iron from here. This is what I did. I calculated the molar mass of Fe2O3 to be...

Sub-panel AMP amount question [ 4 Answers ]

Hello, I have a 150 amp main and a full 150 amp circuit breaker box with a number of doubled 20 amp breakers. Can I still add a sub panel? If so, how does one calculate the maximum amount in amps of such a sub panel? -Terry

Lumpsum relocation amount [ 1 Answers ]

I recently got an offer and the company said they will provide me with a lumpsum relocation amount of $10000. The company is on South Carolina. What I need to know is how much tax will be deducted from this 10K and will this amount be added to my net income in the year 2006. Can I claim the...

View more questions Search