Understanding Vesting in 401k Plans: Key Points to Know

What is Vesting in 401k Plans? Vesting in 401k plans refers to the process by which employees gain ownership of the employer contributions made to their 401k accounts. While employees are always 100% vested in the contributions they make themselves, employer contributions often come with a vesting schedule. This schedule determines when the employer-contributed funds become the employee's property. Types of Vesting Schedules There are generally...

10 Things to Know About a 401k Plan Before Getting Started

What is a 401k Plan? A 401k plan is a retirement savings plan offered by many American employers that has tax advantages for the saver. It is named after a section of the U.S. Internal Revenue Code. Essentially, a 401k plan allows employees to divert a portion of their salary into long-term investments, which can grow tax-deferred until the funds are withdrawn, typically after retirement. The primary purpose of a 401k plan is to help employees...

Sign In


Reset Password

Please enter your username or email address, you will receive a link to create a new password via email.