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 an employee gains full rights to employer - contributed funds, even if they leave the job. The other options are incorrect. Investment gains are possible regardless of vesting. Taxes are typically due on withdrawals (not “never” as in option 3). Early withdrawals (before age 59.5 usually) often have IRS penalties (contradicts option 4).

Answer:

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