Originally Posted by
full of luv
So say the company puts in 16K your first three years at NK for a total of $48K and you get a total return of 15% on that money due to conservative stock investments for a total of $55,200. Then you leave after 3 years, your saying you'd only take 40% of that money with you in your 401K (so a total of $22,080) and the company gets to keep the rest?
Just trying to understand.
Thanks
It’s a simple graded vesting schedule. So yes, if you leave after completing 3 years, you’re entitled to take with you 40% of the company investments and the rest is forfeited back to the company.
Usually the company is required to transfer the “forfeited” funds back into the program for existing employees; to fund their plans, or plan costs, as reallocated forfeited funds.