Steven Posted July 1, 2005 Report Share Posted July 1, 2005 I was just looking at the website for the company which my company has our 401(k) with and it says I'm 20% vested. What does this mean and when do I get a full vest? I assume it has something to do with my being with the company a year since it said 0% last weekend and 6/30 was my year anniversary. I just have no idea what it means. :scratches head: Quote Link to comment Share on other sites More sharing options...
wtnhunt Posted July 1, 2005 Report Share Posted July 1, 2005 Re: Answer me this Vesting is figured by how many years of service. 20% vested means you would get 20% of the comapanies contributions if you withdrew the money now. When you are fully vested you would get it all, aside from whatever uncle sam takes. When I had my 401K it was 4 years of service with the company I worked for to be fully vested. Quote Link to comment Share on other sites More sharing options...
HarvDog Posted July 1, 2005 Report Share Posted July 1, 2005 Re: Answer me this That sounds right. Quote Link to comment Share on other sites More sharing options...
Texan_Til_I_Die Posted July 1, 2005 Report Share Posted July 1, 2005 Re: Answer me this Yep, if you've been there one year and you're 20% vested, then it must take five years to be fully vested. Keep in mind that the money you contribute to the plan is always yours, but the part the company matches you only get after a certain amount of time. It's an incentive to stay with the organization. Quote Link to comment Share on other sites More sharing options...
hutchies Posted July 1, 2005 Report Share Posted July 1, 2005 Re: Answer me this Some companies even drag it out longer. One company I worked for had a 7 year 401K plan. Quote Link to comment Share on other sites More sharing options...
Tominator Posted July 1, 2005 Report Share Posted July 1, 2005 Re: Answer me this 5 years is pretty much a standard benchmark for vesting. It means a lot as far as what happens when you leave the company, and it probably has something to do with being able to get rid of you. If they want to get rid of a 1 year employee, it's easier to do than a fully vested person. Quote Link to comment Share on other sites More sharing options...
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