Message Font: Serif | Sans-Serif
No. of Recommendations: 1

Is it wise to invest in your company's 401k plan if you know for a fact that you will not be there before you become vested ? Would the money be better off in a Roth IRA? Thanks

Vesting usually applies to a company match, not to your contributions. I'm not positive if this applies to all 401k plans (though I'm pretty sure it does), but all employee contributions to a 401k never have to be vested. Meaning, you take all money deducted from your paycheck for your 401k with you when you leave your company.

Vesting, which varies from company to company, applies to the free money you get from the company in a match. Investing in a 401k is a good choice, even if you leave before all your free money is vested.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.