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If you're putting money aside for retirement and benefiting from an employer match, that's excellent! However, some 401(k) plans only allow you to keep that match if you've been employed with the company for a set amount of time. Before quitting, review your 401(k)'s vesting schedule.
U.S. News elaborates:
If you leave your job, you won't be able to retain the 401(k) match provided by your employer until you're vested in the plan. Less than half (45%) of 401(k) plans offer immediate vesting of employer contributions. Some companies allow employees to keep a portion of the employer's contributions based on their years of service, but full retention typically occurs only after five (19%) or six (14%) years of employment.
This is an important condition to remember if you're thinking about leaving your company. For more common 401(k) mistakes, be sure to read their full post.
Image courtesy of Bill Abbott.
