What happens to the employer contribution part of the 401k after a layoff here?
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Cut at 2.6 years... now I lost ~$26k in vesting... p-ss-d about that.
They will immediately vest everyone in case the plan is terminated, like the company gets bought by another company, and the 401K is transferred into a new company plan. However, a layoff does not have any effect on vesting rules.
Quit or laid off, there is no difference to 401K.
GM can make good of company portion if you are laid off before completing 3 years. If they have any scruples, they should. GM and scruples in the same sentence is an oxymoron. They will hide behind the IRS rule according to which GM is obligated to make good the company part only if 20% of workforce is laid off. Perhaps that is one reason why they kept it at 15%. That is pure speculation though. Not many people should be in this category except NCHs.
Thats what I thought. I was hoping they would have vested it for everyone getting laid off. I guess that was too much hope for GM.
If you're here less than 3 years you lose the unvested portion
Somewhat related question. For those of you under 3 years was your 401k vested upon getting laid off?
If you have been there for 3 years or more it’s vested so you get to keep it. If you login to your retirement account you can tell whether it’s vested or not