What is a Vesting Schedule?

A Vesting Schedule applies to Employer Contributions only. You are always 100% vested in your personal 401(k) and Roth deferrals and their earnings.

Employer Contributions are allocated to a separate account, and with each year of service of 1000+ hours worked, you are entitled to 20% of that account each year. You will be 100% vested in the employer contribution account after 6 years of qualified service. If you terminate employment prior to 6 years, you are entitled to the percentage of that account per the vesting schedule: