401(k) Vesting Schedule: When Your Match Is Truly Yours
Understand cliff, graded, and immediate vesting - and what it means for your money
Your own 401(k) contributions are always 100% vested, but employer match contributions often vest over time. Understanding your vesting schedule is critical before changing jobs.
Types of Vesting Schedules
- Immediate vesting: You own 100% of employer contributions from day one
- Cliff vesting: 0% until a specific date (typically 3 years), then 100%
- Graded vesting: Gradual increase (e.g., 20% per year over 6 years)