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...

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