Guest robynkash Posted April 25, 2001 Posted April 25, 2001 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 Posted April 25, 2001 Posted April 25, 2001 A participant becomes fully vested upon reaching early retirement age as defined by the document. The reason for termination is irrelevant.
Guest Katie G. Posted April 3, 2003 Posted April 3, 2003 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 Posted April 3, 2003 Posted April 3, 2003 Your plan document will (should) state whether or not early retirees are fully vested. It is not REQUIRED to vest early retirees.
RCK Posted April 3, 2003 Posted April 3, 2003 Right. It is required to 100% vest at attainment of NORMAL retirement age. RCK
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