Customization Option: Vesting of Employer Contributions

401k Census's IRS-approved prototype 401k plan allows an employer to establish any of the below for any employer matching contributions and/or discretionary employer contributions; qualified no elective contributions are, by IRS mandate, always immediately vested when made.

If your company chooses to make both matching contributions and discretionary employer contributions, it can establish the same or different vesting schedules for each type of employer contribution.

Below are the schedules currently available:

Vesting Options for Employer Matching and/or Discretionary (profit-sharing) Contributions
SCHEDULE A: 100% immediate vesting
SCHEDULE B: 0-2 years
3 years
=
=
0% vested
100% vested
SCHEDULE C: 0-4 years
5 years
=
=
0% vested
100% vested
SCHEDULE D: 0-1 years
2 years
3 years
4 years
5 years
6 years
=
=
=
=
=
=
0% vested
20% vested
40% vested
60% vested
80% vested
100% vested
SCHEDULE E: 1 year
2 years
3 years
4 years
=
=
=
=
25% vested
50% vested
75% vested
100% vested
SCHEDULE F: 1 year
2 years
3 years
4 years
5 years
=
=
=
=
=
20% vested
40% vested
60% vested
80% vested
100% vested

You can also write your own vesting schedule, which 401k Census will then verify against IRS standards.

Free help is available with understanding your 401k plan customization options and the affects choices typically have on a 401k plan. Call 1-800-660-0050 or e-mail us talk with a 401k Census representative.

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