How Your 401k Plan's Vesting Schedule Really Works

In this episode of The 401k Podcast, Lucas and Luna dig into the details of 401k vesting schedules. Lucas explains the difference between cliff vesting and graded vesting, using a concrete example of a company with a three-year graded schedule. He walks through how much an employee actually owns of their employer match after one, two, and three years. Luna asks whether changing jobs resets the vesting clock and what happens to unvested balances. The episode also covers how the SECURE 2.0 Act's three-year cliff vesting requirement for new safe harbor plans starting in 2026 changes the landscape. Lucas emphasizes that vesting only applies to employer contributions, not your own deferrals. This is a practical guide for anyone trying to decide whether to stay at a job until they are fully vested. #401kVesting #CliffVesting #GradedVesting #EmployerMatch #SECURE2Point0 #RetirementPlans #JobHopping #UnvestedBalance #FiduciaryDuty #PlanSponsor #HR #PersonalFinance #RetirementSaving #EmployeeBenefits #LucasAndLuna #The401kPodcast #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo