Unvested 401k
Anyone knows what happens to 401k not vested yet, when laid off as part of reorg which affected 20+% of employees.
I have read somewhere that if the layoff affected more than 20% of employees, you are fully vested.
Yes, that’s true. https://www.libertytax.com/tax-lounge/your-401k-may-not-be-safe-during-a-layoff/ AT&T has a 6% match and a 3 year cliff vesting schedule.
Yes, usually when companies do huge layoffs they vest the whole 401k irrespective years of service and you could get the unvested amount as well. But again, the HR would include this clause in the termination letter as part of severance package.
Oracle and Amazon also have slow vesting 401K's. I guess they can be considered old school.
Mine is 3 years to vest. Still have until July 2018.
Unvested contributions will be lost, though if re-hired within a certain time, they might come back. Possibly your employer will accelerate the vesting.
Your contributions are always yours. The employer match will disappear if you withdraw before you’re vested. Log in and you should be able to see how much you’d get back before you vest.
You still need continuous employment until it vests. If you can take another position until it does, I️ would. If not, you may miss out.