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Author: hberes One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25223  
Subject: Re: Vesting Date: 1/9/2001 7:25 PM
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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.

-H
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