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.