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URL:  http://boards.fool.com/401k-vesting-rules-10061264.aspx

Subject:  401K Vesting Rules Date:  12/8/1997  1:07 AM
Author:  rickisme Number:  845 of 121599

I believe ERlSA requires a 20% per year vesting credited to employees over a 5-year period at which time any and all employer contributions are considered fully vested. (It's been awhile since I checked for any changes in these matters so I could be wrong about this.) My question is this: If the parent corporation is selling one of its subsidiaries (where I work) and I have been in the 401K plan for only three years, how much of past EMPLOYER matching contributions vest to me given that they are terminating the plan and that we will no longer be affiliated with the parent corporation? My assumption would be 100% given the involuntary nature of the plan termination. But, could it be a prorated vesting schedule based on length of time employed to conform to the mandatory 20% per year ERISA rules?

rickisme
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