Vesting
The process by which you gain full ownership of employer contributions over time.
What does vesting mean?
Your own contributions are always yours, but employer matches may "vest" gradually — for example, 20% per year — so you only keep the full match after several years. Leaving early can forfeit the unvested portion.
Related terms
Vesting — frequently asked
What does it mean to be fully vested?
Being vested means the employer contributions in your retirement plan are permanently yours, even if you quit. Your own contributions are always 100% vested; the match may vest gradually or all at once after a set period.
What happens to unvested money if I leave a job?
You forfeit the unvested portion of employer contributions. Anything already vested — plus all of your own contributions and their growth — stays yours to roll over or keep. Check your plan’s vesting schedule before leaving.