Being vested in a retirement plan means that you can take the benefit with you when you leave your place of employment.
Immediate vesting is when you are immediately 100% vested in your plan.
Cliff vesting is is an either-or type of vesting. If you stay x number years or longer, you get to keep 100% of the money in your retirement plan. If you leave before x number of years, you get none of it.
Graded vesting allows you to get at least 20% of the money after two years, and fully vested after 7 years or less.
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Immediate vesting is when you are immediately 100% vested in your plan.
Cliff vesting is is an either-or type of vesting. If you stay x number years or longer, you get to keep 100% of the money in your retirement plan. If you leave before x number of years, you get none of it.
Graded vesting allows you to get at least 20% of the money after two years, and fully vested after 7 years or less.