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I've looked at my companies website and other financial sites but I just need it explained in a way that is easier to understand.

2007-02-04 06:35:18 · 6 answers · asked by The time has come 3 in Business & Finance Personal Finance

6 answers

Vested means you have fulfilled the requirements to fully earn the benefits of a specific plan. For example, many employers will match your 401K contributions each year. However, they will have a provision in the match which states that you only earn 20% of their match each year, and after 5 years, you are fully vested, or have earned their entire match. If you leave before you are fully vested, you wil not get the full amount of the matching they have put aside for you, only the amount you have earned to date.

2007-02-04 06:41:56 · answer #1 · answered by Derek G 2 · 0 0

from dictionary.com
vest·ed /ˈvɛstɪd/ Pronunciation Key - Show Spelled Pronunciation[ves-tid] Pronunciation Key - Show IPA Pronunciation
–adjective 1. held completely, permanently, and inalienably: vested rights.

You become vested, at your company in certain things - like pension contributions. Typically this is vested over 5 years. 20% the first, 40% second....100% after 5 years. What this means is that if you leave the company any contributions made to your account are 20% yours after 1 year, and 100% if you work there 5 or more years.

This also applies to stock options too. You earn them if you stay with the company for some period of time.

Hope that is a little clearer now.

2007-02-04 06:43:29 · answer #2 · answered by smh60437 3 · 0 0

Basically, on many jobs you get benefits. Stocks...profit sharing...so on. Well they will give you these benefits, and tell you that you have them, but in all actuality many of these benefits are not fully realized until you have been there for 5 years. They may tell you that you get 10,000 in profit sharing. Well the first year you are there, you are only vested 20%. So if you left after the first year you would only get 20%. If you stayed there for the full vesting time, you would get the full amount.

2007-02-04 06:44:52 · answer #3 · answered by DRSOGR 2 · 0 0

It is advisable that you should investigate the problem at the legal search engine

www.LawSolver.com

On LawSolver, individuals can ask any legal issue and instantly find free lawyer answers. Free attorney answers to analogous problems:
(1) "Exactly how long does a company have to pay out my ESOP? - Avvo"
(2) "I am not vested in my pension and there is no contribution to it before I am vested. How will that be handled in divorce ? - Avvo"
(3) "I exercise stock options that vested from my old employer I was allowed to exercise them, they want repayment do I have to repay - Avvo"
(4) "I was fully vested in my 401k when I left my previous company, but now the 401k statements say I am not vested. What do I do? - Avvo"
(5) "What does it mean to be "vested" in the union, and is an non vested member entitled to death benefits? - Avvo"

Further, resources and articles:
(1) "Bankruptcy Definition: What Exactly Is It? - FindLaw"
(2) "Plagiarism: What is it, Exactly? | legalzoom"
(3) "Can an Owner Be Voted Out of an S Corporation? | LegalZoom: Legal Info"

2014-12-25 20:48:27 · answer #4 · answered by Employment Law Help 1 · 0 0

It means that options that were granted in the past, can now be exercised. So if the stock price is higher than the exercise price you are now allowed to exercise these options and sell the stocks on the market, thus realizing your profits. If they are not vested they may have worth, but you can realize the value, until you are allowed to, so until they are vested.

2007-02-04 06:39:05 · answer #5 · answered by Cheanea 3 · 0 0

As others pronounced and to concur. you place earnings and the employer suits it counting on your proportion. in case you bypass away previously the proscribed era which varies yet is often 3-5 years you in basic terms come again the money which you place it. no longer what they did. as quickly as you reside for the necessary time you could stroll away with all of it. Even what they tournament after the three years or such. Remeber although that the money they put in is working for you. So once you're making the final fund selections and your 401 is appearing nicely that would negate in spite of loss you're taking from leaving early. All in all it relies upon on plenty. in case you would be determining in the close to destiny attempt to %. some money that lean in direction of foreign places investments simply by fact the dollar is crap astounding now. i'm doing wonderful and nicely with mine. yet my spouse (previously we've been married) picked in spite of money blindly. She has a severe point pastime and is wise as a whip yet whwn it comprises 401Ks she is clueless. She in simple terms picked in spite of and ended up invested with foreign places leaning ones. Her stability has tripled in in simple terms eleven months. there is extra to it and sorry I have been given off on yet another tangent.

2016-12-17 09:15:28 · answer #6 · answered by Anonymous · 0 0

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