What Is Retirement Plan Vesting?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    When a retirement plan is vested you will be able to take that portion of the retirement plan with you if you lose or quit your job.  If a company pays in to a retirement plan they will usually require you work at that company for a specified period of time.  If you leave the portion of the plan that is vested will go with you after that point.
    Answered on June 6, 2013
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    What is retirement plan vesting?    Vesting applies to some qualified plans where an employee earns a greater percentage of the employer contribution to their "name" as time passes while they work for the employer. The idea behind a vesting schedule is to reward the employee for sticking around by making more and more of the employer contributions the employees.  A usual vesting schedule runs five years. Starting with a 20% vested in the first year moving to 100% vested by the fifth year.
    Answered on June 6, 2013
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  3. 1976 POINTS
    Ronald Hinch
    Regional Marketing Director, Capital Choice Financial Group,
    Retirement plan vesting is the time that an employee can receive all of his or her company retirement savings. Usually, this is after separation from the company but it can be when you are still employed if it your employment is past the designated time for retirement. Vesting information is different for different plans and companies. The HR dept can answer vesting questions.
    Answered on April 11, 2016
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