Check with your plan administrator to find out about the specific details of your k plan. Like any investment, k plans have pros and cons. Here are some frequently asked questions about k plans:. Typically, you must be at least 21 and have worked for a company for a year to participate in a k plan. Some companies, however, might have rules that allow you to participate before then.
For all of the funds to be yours, you must be fully vested. Your balance might show how the amount of a fully vested employer contribution, only to have your balance adjusted to reflect your vested amount when you leave your job or roll over your plan. You might take your k investment account with you when you leave your job or you might decide to leave it with your former employer.
Here are your options:. Although a k plan can be a good retirement vehicle, not all plans are the same. Read More. Every day, get fresh ideas on how to save and make money and achieve your financial goals. Take these steps to maximize your retirement savings. Sponsored Links by Zergnet. If you want to have a happy retirement, avoid these perils. By Roger Wohlner. By Gabrielle Olya. By Andrew Lisa. By Cynthia Measom.
Check Out Our Free Newsletters! Example: Employer A sponsors a profit-sharing plan. The plan only has employer contributions, uses a 6-year graded vesting schedule and counts hours of vesting service based on a calendar year. John began working for Employer A in June and quit in August John worked at least 1, hours the minimum number of hours of service required to be credited with a year of service under the terms of the plan in , , , and If you have questions about your vesting, ask your employer or human resources department, read the Summary Plan Description or refer to your annual benefits statement.
More In Retirement Plans. Employer contributions Different vesting requirements apply to employer contributions depending on the type of plan the employer sponsors.
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