Matching contribution question

[Guest gsbanks]

I am trying to decide between my company's 401(k) or 403(b). We have 401(k) matching contributions of 3 percent if we put in 4. Company contributions are not vested until 3 years of service. I do not plan on being here for 3 years. If I take the matching contributions and lose it when I leave, who gets to keep the earnings from the matching contributions? Will they get back only their contributions and not any money earned from it or do they get both?

Thanks,

Stacey

[Tom Poje]

any unvested money (which would include earnings) is generally forfeited - either being reallocated to other particpants as an additional contribution in the year of forfeiture or being used to reduce the overall contribution itself.

It is possible forfeitures will be used to pay plan expenses.

This would be described in the plan document,

possibly in the SPD (Summary Plan Description) which you hould have been given a copy