Unvested 401k
I am leaving my employer next week with some unvested 401K. HR Benefits person told me that unvested 401K is company's, but any gains made on that unvested amount will be mine if I don't roll to my new employer's plans or withdraw until my retirement. I.e. I have $10K unvested 401K. At 10% compounded for 35 years, this will grow to $281K. When I withdraw in 35 years, $271K will be mine and $10K will be company's. Is this really true?
yes but I have a better deal for u, ever thought of owning a bridge
You know what is really disappointing about the Brooklyn Bridge these days? No one selling fake deeds to the bridge. I would have thought that would make a great souvenir. They sell lots of other useless junk though.
They will remove the unvested amount immediately. Any gains you have made on it thus far are yours. There will be no future gains.
^ this
Nop, you forfeit the company match period. Look at your company's 5500 form
Theyre gonna take back that 10k sometime in the next year. The few dollars youll make off that 10k will be yours
what if u roll it over to a different brokerage before they take it out
He told me that the company wont take out the unvested portion until my retirement (unless the company's policy changes) as long as I keep my vested portion with them.
My unvested $10k is still making small profits for the last two years.
Interesting... I thought that would just be lost money...
What do you mean unvested 401k?
some companies’ matching vests over time like stock, instead of vesting immediately
That’s some shitty 401k plan damn.
The HR Benefits person is uneducated. I am actually embarrassed to have worked at companies with vesting schedules for employer matches. Hence I've lots of experience with this. IME what happens is that the unvested employer match stays there for as long as the 401(k) plan exists, until one of the following happens: * You roll it over into another 401(k) or IRA * You cash out * The company is acquired * You rejoin the company and start vesting again. I can believe that the unvested balance is eventually zeroed out for some people, but 20 years after she left the company, my ex-wife still had unvested 401(k) match dollars.
so you mean the HR benefits person is correct?
Can I have some of what you are smoking?
I wasn't fantasizing, just repeating what my Benefits manager told me... But ok, so it's a lie?