Under federal rules, private-sector plans must let you become at least 20% vested in your benefits after year three. You must be fully vested by the time you’ve completed seven years of service. The vesting rules work a bit differently for church and government pension plans. What is fully vestedRead More →
“Vesting” in a retirement plan means ownership. This means that each employee will vest, or own, a certain percentage of their account in the plan each year. An employee who is 100% vested in his or her account balance owns 100% of it and the employer cannot forfeit, or takeRead More →
Sell to Cover or Net Issuance: Both involve selling vested shares of stock to cover the cost of the withholding tax. Remaining shares are given to the recipient. Same day sale: Sells all vested shares and uses part of cash proceeds to cover withholding tax. Remaining cash is given toRead More →