What does it mean when someone is "vested"?

EthanR answered one year ago …

Vested is a term that usually means that a person has been in a job long enough to qualify for the full amount of matching funds that the employer gives the employees in their 401k. Usually that is a period of 5 or more years. The first year you may get 20% vesting, then the second year 40% and so on. If you leave the company before the five years you would only get that percentage of the total the employer has matched in your 401k. After you are fully vested, you would get all 100% of the matching funds when you leave the company.