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401(k) Vesting: How It Works

If you see a "vested balance" on your 401(k) statement, here's what that number is telling you.

By Matthew Frankel, CFP – Updated Apr 5, 2025 at 11:27PM

Key Points

  • Employers often match 401(k) contributions up to a set percentage of salary.
  • Vesting schedules determine when you own employer-contributed funds, typically over years.
  • Leaving a job before being fully vested could result in losing some employer contributions.
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