Vesting determines what is yours to keep if you leave employment. A participant must be 100% vested in his benefit when he reaches retirement age. 100% vesting is usually provided upon death or disability as well. Qualified Plans must vest benefits at least as rapidly as one of the following tables.

  Years                       Years                
of Service   Vested %       of Service     Vested %
    0          0%                0            0%   
    1          0%                1            0%   
    2          0%                2            0%   
    3          0%                3           20%   
    4          0%                4           40%   
    5        100%                5           60%   
                                 6           80%   
                                 7          100%   

If a plan is Top-Heavy (more than 60% of benefits go to the Key Employees), the choices default to one of the following tables, or optionally a more favorable one.  Matching contributions under a 401(k) plan must be at least as favorable as these.

  Years                       Years                
of Service   Vested %       of Service     Vested %
    0          0%                0            0%   
    1          0%                1            0%   
    2          0%                2           20%   
    3        100%                3           40%   
                                 4           60%   
                                 5           80%   
                                 6          100%   

A Plan that provides that an employee must complete more than one year of service (maximum of 2 years) must vest participants 100% upon entry into the plan.