Question

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. If an employee leaves the job, they can keep the vested employer - contributed money. Investment gains are part of the account's performance regardless of vesting. Taxes are usually paid when funds are withdrawn (in a traditional 401(k)), and early withdrawals (before 59.5 years old) generally have IRS penalties.

Answer:

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