Retirement Plan
What does vesting mean? Why is it so important that you know this as it pertains to your company retirement plan?
What does vesting mean? Why is it so important that you know this as it pertains to your company retirement plan?
Vesting deals with the money your employer is matching on your retirement money. It usually runs about 5 years. This means that in many cases, you must work there at least 5 years (this is pretty normal, but the period can vary based on the company policy) before any matching money becomes yours.
If you leave earlier than that period, you will get some or none of that matching money (sometimes they give you a percentage of the matching money based on how many years you have worked there). Be sure to identify the vesting period with every employer. There is REAL money at stake!