QACA 2-6 year graded vesting

[Sarah73]

I can't find any info online indicate a QACA plan allows 2-6 yr graded vesting. But I do remember I saw this design many years ago. Am I wrong?

[Belgarath]

The QACA safe harbor contributions themselves cannot use 6-year graded vesting. But, there could be other employer contributions such as profit sharing that could use that vesting schedule.

[BobbyV]

I am under the impression that QACAs could have a three year cliff vesting schedule but six year graded is not allowed..

[Lou S.]

The QACA employer safe harbor contributions have to vest over no more than 2 years, but it can be 2 year cliff if I recall correctly.

as Belgarath points out other employer contributions such as a profit sharing contribution could use a different schedule such as 2/20 if provide in the document.

God bless the job security of piece meal retirement legislation that brings us multiple different vesting rules for different types of plans and sources or money.

[Tom Veal]

Yes, two year cliff vesting is allowed for safe harbor QACA matching and nonelective contributions.