CNBC Worker's 401(k) Fully Vests After 6 Years, Highlighting Match Rules
Updated
Updated · CNBC · Aug 11
CNBC Worker's 401(k) Fully Vests After 6 Years, Highlighting Match Rules
2 articles · Updated · CNBC · Aug 11
Summary
Six years at CNBC will make the author's employer-funded 401(k) contributions fully theirs at month-end, underscoring how vesting can materially change the value of staying or leaving a job.
Employer contributions often remain conditional until a time threshold is met: cliff schedules can leave workers with 0% before a set date, while common graded plans rise to 100% vesting after 6 years.
PSCA data show 44% of employers vest matching contributions immediately, while 17% use cliff vesting and about 39% use graded schedules; workers' own paycheck contributions are always theirs immediately.
The stakes can run into thousands of dollars — a worker with $20,000 in employer-funded savings who is 60% vested could forfeit about $8,000 by leaving now — making plan documents and job-offer comparisons critical.