Question

question 3 of 8
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 gaining ownership of employer-contributed funds. Once vested, you retain these funds even if you leave the job. Other options are incorrect: investment gains are possible, taxes apply upon withdrawal, and early withdrawals usually have penalties.

Answer:

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