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Financial Information for Senior Military Officers

You're Vested...But Will You Get Your Matching Contributions?

You're Vested...But Will You Get Your Matching Contributions?

You've been with your company for a while.  In fact you are fully vested under the 401(k) plan.  You're thinking it might be time to think about going somewhere else or maybe hanging up your spurs.  Will you get your matching funds?

I know, some of you are indignantly stating, "Of course I will.  I'm vested."  That is a true statement...mostly.  You'll get the matching contributions from last year and earlier.  But, what about this year?

Depending on when your employer actually puts the matching funds into your 401(k) the answer might be "Not yet."

There is a trend amongst employers to delay the contributions until late in the year.  The result of this change is that if you leave your job before the contributions are made you won't get the money.  IBM, a leader in the employee benefits arena, delays 401(k) matching contributions until the 15th of December.

So...if you're thinking about leaving your job, make sure you understand when your matching funds will be actually deposited to your account (not just when they show up on your statement) or you might leave money on the table.  Of course, that may not be your only consideration but forewarned is forearmed.

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