401(k) vesting, or what is called your “vested balance”, refers to how much of your 401(k) balance goes with you if you leave the company.Vesting is also used to determine how much you can borrow if you take a 401(k) loan, as you can only borrow from your vested balance. You are always 100% vested in your contributions, so you always keep your own money.Safe harbor match – 100% Vested If your employer uses what is called a “safe harbor match” then you are 100% vested in that portion of the company contribution.
Lump-sum distribution If you need a wad of cash right away, this option will serve that purpose.
There are two key downsides: you forfeit the benefits of tax-deferred compounding by cashing out all at once; and you'll have to pay income taxes on your distribution for the tax year in which you take it, which can be a big bite out of your nest egg all at once.
Abstract: According to Gallup, Millennials make up close to 40% of the United States workforce.
However, less than one-third of them are engaged at work.
We understand that saving for retirement can be a challenge.