The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: BlueLesPaul on May 26, 2015, 11:17:56 AM
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Does anyone know what whould happen if your portfolio has losted money when you leave your job and you are not fully vested? Does the plan get a reduced amount back or their full amount back?
E.G. You have invested $1000 and the plan has contributed $500. You are 50% invested. When you term, your portfolico is down $750 to $750. Do you forfeit $125 (50% of the amount that would be attributed to the employer contribution) or $250 (50% of of the vested amount) to the plan when you terminate?
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In general they put money in separate buckets based on where it came from. So in your example $1,000 was contributed through the "employee contribution" bucket and $500 was contributed through the "employer match" bucket. Assuming both buckets were invested in the same thing, the value went down to $500 in the employee contribution bucket and $250 in the employer match bucket. If you leave and are only 50% vested, they'll probably take away $125, but you should check your plan documentation to be sure.