What Is Vesting In Retirement Plan?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   Generally speaking, vesting in a retirement plan may be tied to direct employer contributions to a qualified plan and/or non-qualified tax deferral plan. As an example, a defined contribution plan, like a 401(k), may also offer matching employer contributions. Some plans that offer this require a certain time employment to secure the employer's matching contributions, i.e. the employee is fully vested.

   Answered on September 7, 2013

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