Vesting

What Does Vesting Mean?
The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account.

Investopedia explains Vesting
Generally, non-forfeitable rights accrue based on the number of years of service performed by the employee. The exact requirements are specified in the plan document, which also contains any applicable regulations. Employees are always 100% vested in salary-deferral contributions as well as SEP and SIMPLE employer contributions.

Filed Under: Retirement, Stocks

Related Terms

401(a) Plan
401(k) Plan
Accelerated Vesting
Eligible Automatic Contribution Arrangements - EACAs
Employee Stock Option - ESO
Option
Option Schedule
Pension Plan
Vest Fleece
Vested Interest
More Related Terms

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