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Vesting

Vesting Definition

This is the time period in which employees have accrued ownership over employer contributions made to an employee’s retirement account.  Vesting rights are based on a set number of years an employee has worked for a company. 


Additional meaning of Vesting:

Employees are always fully vested in their own contributions as well as Individual Retirement Accounts like SEP (Simplified Employee Pension) and SIMPLE (Savings Incentive Match Plan for Employees).








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