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What is a Vested Balance?

What is a Vested Balance?

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Your vested balance is the portion of your 401k account that you are currently entitled to.

The funds that you contribute to your 401k retirement account from your pre-tax earnings are considered part of your vested balance. If your employer provides matching funds, these contributions are sometimes not considered part of your vested balance until some period of time has passed, for example 3 years from the time of the contribution. There may be other conditions for employer contributed funds to become vested. Consult your 401k plan documentation for the specific requirements of your plan. You may not withdraw, take out a loan against, rollover or otherwise use any unvested portions of your 401k balance.

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