When Does 401K Become Vested?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The 401(k) is a plan instituted by your employer.  The documents describing the plan are available from the employer.  If the employer is contributing to the plan that portion is normally subject to a vesting schedule.  There are prescribed ways of implementing the vesting schedule but the employer is the one that selects the schedule used in your company.  The vesting schedule shows you the relationship between years in the plan and the percentage of the employer’s contributions that are available to you.  The schedule calls for 100% vesting at some point.
    Answered on July 2, 2014
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    When does a 401k become vested? Usually no more than 6 years for most vesting schedules. Depending on your plan offered by your employer you can be fully vested after entering the plan on day one and anywhere in between up to those 6 years. You should be able to get a plan summary from your employers HR department that will provide you with the specifics for your particular plan. Oh, as a side note, your contributions to a 401k are always fully vested.
    Answered on October 7, 2015
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