Author Topic: New 401k and vesting - Iím stumped  (Read 402 times)

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New 401k and vesting - Iím stumped
« on: October 03, 2021, 05:10:55 PM »
My brothers employer is starting a 401k right now. Thereís a vesting schedule. Heís been working there for five years, but does the vesting start now? Or would it be when he started employment even though the plan didnít exist then?  I read and googled and canít tell.

Heís also wondering about putting in more than heís going to make in the last quarter. I think thatís a no-go. But say heís making 10k from now until December, he canít bring the rest of his maximum in cash, can he?

Thanks for any insight!!

seattlecyclone

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Re: New 401k and vesting - Iím stumped
« Reply #1 on: October 03, 2021, 05:12:37 PM »
You're always fully vested in your own contributions. For employer contributions I'd guess they could probably write the vesting schedule so everyone starts from zero because it's a brand new plan, but they could probably write it to take prior service into account too. I'd doubt any of us could give you a definitive answer on that.

MDM

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Re: New 401k and vesting - Iím stumped
« Reply #2 on: October 03, 2021, 05:33:57 PM »
Heís also wondering about putting in more than heís going to make in the last quarter. I think thatís a no-go.
Correct.

Quote
But say heís making 10k from now until December, he canít bring the rest of his maximum in cash, can he?
Nope.

slappy

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Re: New 401k and vesting - Iím stumped
« Reply #3 on: October 04, 2021, 12:06:55 PM »
He should ask his employer/HR about the vesting schedule.