Vesting
Vesting is how you earn full ownership of employer contributions over time. Your own contributions are always 100% yours, but matching funds may vest gradually — you might keep 20% after one year, 40% after two, and so on, forfeiting the unvested portion if you leave early.
Two shapes dominate. A cliff schedule grants nothing until a set anniversary and then everything at once, so leaving at 35 months of a three-year cliff forfeits the whole employer contribution. A graded schedule releases a rising share each year, commonly 20% a year across five — leaving at two years with $9,000 of accumulated match keeps $3,600 and forfeits $5,400. Your own contributions are never subject to this; only the employer's money is. The practical consequence is that a resignation date is worth checking against the vesting calendar before it is agreed, since a few weeks can be worth more than a signing bonus. Equity grants vest the same way, though vesting RSUs is also a taxable event.
Put it to work
401(k) Calculator
Project your 401(k) balance at retirement — including the employer match — and check your contributions against the 2026 IRS limit of $24,500.
Retirement Calculator
Project your retirement savings: what your balance could reach by retirement age and the monthly income it could sustainably provide.