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
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.
Explore
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
Vesting
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%
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
