401k vesting

[RSpend]

What is the name of your state? UTAH

I have been involved in a 401k program for several years now. About six months ago, my employer switched investment companies. During the close-out of the old account, it stated that I was 100% vested. Now that it has switched over, it states that I am not vested. I plan to leave soon, but I do not want to lose the $5000 of matching money.

Is this normal? Is it legal? Does anyone know the rules on this...shouldn't money that is 100% vested be owned by the employee after a switch to a new company, and anything matched afterwards be held separate? Do I really have to wait 2.5 more years to get that? What if they switch again in two years?

 

[Dionysia]

If the plan simply moved from one 401K provider to another, the plan itself should not have changed, including the 401K match vesting schedule. It's possible that when the employees were moved over, the new provider did not adjust people's service dates to their original ones, but instead defaulted to the date of the plan transfer. This should be corrected, but I'd ask your HR/Benefits Admin to be sure.

Di