Retirement

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.

Put it to use

401(k) Calculator A 401(k) can be one of your best tools for creating a secure retirement. Use this calculator to see why this is a retirement savings plan you cannot afford to pass up.

Related terms

Employer Match 401(k)

All glossary terms