Vesting and Early Retirement Age

[Guest robynkash]

Question -

If a 401(k) has an early retirement provision, does that mean that anyone terminating after the early retirement age is fully vested at that time?

Even if they were involuntarily terminated?

Thanks!!

Robyn

[actuarysmith]

A participant becomes fully vested upon reaching early retirement age as defined by the document. The reason for termination is irrelevant.

[Guest Katie G.]

When you say

"a participant becomes fully vested upon reaching early retirement age as defined by the document,"

does that mean it is automatic or the only way to become 100% vested at early retirement is if the document elects this?

I have a document that elected ERA as 55 with 0 years of service required but it does not specify whether or not the participants become 100% vested at this time. NRA is age 65.

Any help would be appreciated!

Thank you!

Katie

[pmacduff]

Your plan document will (should) state whether or not early retirees are fully vested. It is not REQUIRED to vest early retirees.

[RCK]

Right. It is required to 100% vest at attainment of NORMAL retirement age.

RCK