Definition

Vesting determines how much of an employer's contributions — such as a 401(k) match or stock grants — you keep if you leave. Your own contributions are always fully yours, but matched funds or equity may vest gradually over several years. Understanding your vesting schedule matters when weighing a job change.

1. Employer Match

   Money your employer adds to your 401(k) based on what you contribute.
2. 401(k)

   An employer-sponsored retirement account funded by payroll deductions, often with a company match.