Question

quiz
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) means that an employee has a non - forfeitable right to the employer - contributed funds in their retirement account, even if they leave the job. Investment gains are not related to the concept of vesting. Taxes may still be due on a 401(k) in certain situations, and early withdrawals usually incur IRS penalties.

Answer:

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