GLOSSARY · INVESTING

Vesting

The process by which employer-provided money or stock becomes fully yours over time. Your own 401(k) contributions are always vested, but employer contributions and equity grants often vest on a schedule, either all at once after a period of service (a cliff) or in steps. Anything unvested when you leave is usually forfeited.

Also called: vesting schedule, cliff vesting, graded vesting

COMPUTE IT WITH YOUR NUMBERS

401(k) contribution and match calculator →How much can I put in my 401(k) in 2026, and am I getting the full employer match?RSU vest tax and 22% withholding gap →How much tax when RSUs vest and is 22% enough?

LEARN IT PROPERLY

CHAPTER · ARRIVING AND WORKING ON A VISA · FOUNDATIONS401(k), IRA and HSA When You Might Leave CHAPTER · GROWING YOUR PRIMARY INCOME · STRATEGIESTotal Compensation: Valuing the Whole Package

SOURCES

Retirement topics: Vesting. Internal Revenue Service.

All terms →The Library →