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  1. If a former employer has merged with a larger company (aka acquired by), and that employer changed from Fidelity accounts to Voya, new plan name, etc… is that the same as “termination of the plan”? They are arguing with me over whether or not I was truly fully vested in my match when I tried to move my funds to my new employer. Thanks!

    • Hi Kelly – That’s a real technical issue. You may have to go back to the rules of the old plan and see if you were vested. But generally speaking when one company acquires an old one, the retirement plans merge seamlessly. But it depends on terms of the merger agreement. If it’s a large amount of money, you may even want to consult with an employment attorney. But see what you can find out on your own before putting out the money for a lawyer.

  2. If I am terminated…without cause…fired because of “downsizing”…and I am only 80% vested, do I lose the other 20% even though I am discharged and do not resign?


    • Hi Preston – Unfortunately yes. The reason for the separation doesn’t matter.

  3. If I am only 20 percent vested, and my employer takes the 80 percent after termination. Are they entitled to interest that was made on there matching contribution? After all it was my investment choices that made them any extra money. If that is the case, theoretically they could end up getting back more than they put into my 401k ?

    • Hi John – I don’t think so, but I must confess I don’t know the answer to that. It may vary by plan, so check the literature for you plan.

  4. I am taking a new job with a company at age 67 (I am full retirement age). Will the company be obligated to consider me to be 100% vested with regard to 401K company match? Thank you, Cliff Huss

    • Hi Cliff – As long as the company has set the retirement age at something before age 67 you should be fully vested going forward. But check with the plan administrator to make sure that’s the case.

  5. I was “Fully Vested” through my companies 401K. I am trying to roll everything to a Traditional IRA. They sent me a form to fill out that forfeits my rights to the money the company contributed. The only money the company said I’m entitled to is the money I contributed. In the forms they provided me it also says I am fully vested, but if I move the money out of their control I lose the employer contribution. Is this correct? Since, I was fully vested I should receive my contributions plus the company’s contributions to roll over to a Traditional IRA?

    Thank you for any guidance in this situation.

    • Hi Jessica – That’s really strange. Fully vested means the money is yours. Call the plan administrator and get a clarification. If that doesn’t work out, it ight be worth having a consultation with an attorney who specializes in retirement plan issues. If the employer contribution is a lot of money, it may be worth getting an attorney involved. It doesn’t sound right at all, but the IRS gives employers a lot of flexibility in managing these plans, so I don’t want to say it’s impossible.

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