Olde Hornet
Well-Known Member
Interesting article, I pasted one key item for those who change job frequently.
http://finance.yahoo.com/news/5-401-k-gotchas-avoid-132959401.html
Leaving before you're vested. When you leave a job, you don't get to keep the 401(k) match your employer provides until you are vested in the 401(k) plan. Less than half (45 percent) of 401(k) plans immediately vest all employer contributions. Some companies permit workers to keep a percentage of the employer contributions based on their years of service, but they typically don't get to keep all of it until they have been with the company for five (19 percent) or six (14 percent) years. Other firms (16 percent) don't allow employees to keep any of the 401(k) match until they have stayed on the job between one and three years. While you may not want to pass up a better job opportunity because you aren't vested in your retirement account, if you are close to vesting, sticking around a few extra weeks or months could add thousands of dollars to your retirement savings.
http://finance.yahoo.com/news/5-401-k-gotchas-avoid-132959401.html
Leaving before you're vested. When you leave a job, you don't get to keep the 401(k) match your employer provides until you are vested in the 401(k) plan. Less than half (45 percent) of 401(k) plans immediately vest all employer contributions. Some companies permit workers to keep a percentage of the employer contributions based on their years of service, but they typically don't get to keep all of it until they have been with the company for five (19 percent) or six (14 percent) years. Other firms (16 percent) don't allow employees to keep any of the 401(k) match until they have stayed on the job between one and three years. While you may not want to pass up a better job opportunity because you aren't vested in your retirement account, if you are close to vesting, sticking around a few extra weeks or months could add thousands of dollars to your retirement savings.