The Yale Law Journal

Retirement Plans

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The Effects of 401(k) Vesting Schedules—in Numbers

Samantha J. Prince, Timothy G. Azizkhan, Cassidy R. Prince & Luke Gorman

In 2022, over 1.87 million Americans ceased employment before satisfying their employer’s 401(k) plan vesting schedule, causing them to forfeit nonvested employer contributions. This Essay uses data to demonstrate the effects of using vesting schedules and highlights companies who had the most affec…