Question

question 3 of 6
what does it mean when the money in your 401(k) is vested?
select a response.
you can keep the money your employer contributed, even if you leave your job.
you will not have investment gains in your employer - sponsored retirement plan.
you will never have to pay taxes on your employer - sponsored retirement plan.
you can withdraw your money at any time without a penalty fee from the irs.

Explanation:

Vesting in a 401(k) refers to an employee's right to the employer - contributed funds in the retirement plan. Once vested, an employee can keep the employer - contributed money even if they leave the job. Investment gains can occur regardless of vesting status, taxes will be due upon withdrawal in most cases, and early withdrawals usually incur IRS penalties.

Answer:

You can keep the money your employer contributed, even if you leave your job.