401k Vesting Schedules Could Cost You Your Employer Match

Episode 29 of The 401k Podcast tackles one of the most misunderstood features of employer retirement plans: the vesting schedule. Lucas and Luna break down how vesting works, why a three-year cliff or five-year graded schedule can leave thousands of dollars on the table if you change jobs too soon. They walk through a real example: a 30-year-old earning $65,000 who contributes 6% to capture a 4% match, only to leave after two years and forfeit $5,200 in unvested employer contributions. The hosts explain the difference between cliff and graded vesting, how to read your plan's Summary Plan Description, and what to do if you're approaching a job change mid-vesting. They also touch on how the SECURE 2.0 Act's long-term part-time worker rules interact with vesting. If you're contributing to a 401k, you need to know when that match actually becomes yours. #401k #VestingSchedule #EmployerMatch #RetirementPlanning #CliffVesting #GradedVesting #SECURE2Act #JobChange #PlanSponsor #SummaryPlanDescription #Finance #PersonalFinance #RetirementSavings #EmployeeBenefits #FexingoBusiness #BusinessPodcast #The401kPodcast #Retirement Keep every episode free: buymeacoffee.com/fexingo