What is a vesting schedule and how do I find out mine?

A vesting schedule dictates how much of your employer's contributions you actually own if you leave. Your own salary deferrals are always 100% yours immediately, but matching and profit-sharing dollars may vest over time. Common schedules are cliff vesting, where you own nothing until a set year and then 100% at once, and graded vesting, where you gain ownership in yearly increments such as 20% per year over five or six years.

Find your schedule in the summary plan description, which HR must provide, or in your online account under plan details. Knowing it matters when weighing a job change, because leaving before a vesting milestone can forfeit real money. The Department of Labor limits how long these schedules can stretch.