Savings and Investments

Individual Retirement Accounts

What is vesting?

Vesting in a retirement plan means that after working for a defined period of time, the employee is able to own and keep whatever account balances and employer matching funds that have been deposited into one’s “vested” account. A company may decide that an employee must be with the company for, say, five years in order to have 100% ownership in the employer’s retirement plan or pension.


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