Legally, you have full ownership of all of the funds that you have contributed to your 401(k) account. That said, your employer’s matching or profit-sharing contributions might be subject to a vesting schedule that dictates how long an employee has to work at a company until they have full rights to these contributions. If you leave your current employer before you are fully vested, you only have full ownership rights over your deferral contributions as well as the portion of your employer match contribution that has vested. Vesting schedules vary by employer and plan, so you should check with your benefits administrator for your plan’s specific schedule.
The information in this section is provided by Betterment LLC, a registered investment advisor.
