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Vested Balance

In the field of retirement plans, vested balance- or vested account balance- is the ownership that an employee has in a retirement account.  Salary deferral or elective deferral contributions are always 100% immediately vested. Contributions to any type of IRA, including those provided by employers, are always immediately 100% vested. Employer contributions to qualified plans and 403(b) plans can be subject to a vesting schedule.

Graded Vesting

Definition Vesting  according to a schedule where the participant is vested at a percentage amount (that is less than 100%) each year until he/she accrues

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Cliff vesting

Definition Vesting according to a schedule where a participant becomes immediately 100% vested after accruing a number of years of service, as opposed to a

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Definition The process by which participants gain ownership (or nonforfeitable rights) in employer contributions made to employer sponsored plans. Certain contributions are always immediately 100%

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Vesting Schedule

Definition The timetable by which participants become vested in employer contributions made to employer sponsored plans. Employer contributions to certain plans cannot be placed on

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