401k - 2 Weeks Notice After 1,000 Hours But Before Vested

Hi all,

First time post here; therefore, I apologize if this has been previously discussed.

I have a question about vesting in the final 33% of my employer’s match. To my records, I’ll vest in it after 1,000 hours of service, which I should hit on Friday 6/12. The previous 2 years when I vested in the first and second 33%, I saw that amount become vested in my T Rowe account the following pay day, which in this case will be on Friday 6/26.

My question to you is if I put in my 2 weeks notice on Wednesday 6/17 (to resign on Wednesday 7/1), which will be after I hit the 1,000 hours of service, but before I see it become vested in my account on T Rowe, will it forfeit my unvested amount? Sorry for the complicated timing, but it’s roughly $12,000 that I’m set to vest in, and I don’t want to make a mistake and leave it on the table.

Thank you for your time! 

If your plan uses the 1000 hour rule and work 1000 in the year you will be credited with a year of vesting service, regardless of when the record keeper gets verification of you working 1000 hours in the plan year.

2 hours ago, Vested2020 said:

Hi all,

First time post here; therefore, I apologize if this has been previously discussed.

I have a question about vesting in the final 33% of my employer’s match. To my records, I’ll vest in it after 1,000 hours of service, which I should hit on Friday 6/12. The previous 2 years when I vested in the first and second 33%, I saw that amount become vested in my T Rowe account the following pay day, which in this case will be on Friday 6/26.

My question to you is if I put in my 2 weeks notice on Wednesday 6/17 (to resign on Wednesday 7/1), which will be after I hit the 1,000 hours of service, but before I see it become vested in my account on T Rowe, will it forfeit my unvested amount? Sorry for the complicated timing, but it’s roughly $12,000 that I’m set to vest in, and I don’t want to make a mistake and leave it on the table.

Thank you for your time! 

You will have 1000 hours by the time you leave (7/1), therefore you meet the requirements to move up on the vesting schedule for that year.  Doesn't matter when they show it on your account, you will be entitled to the next year, which takes you to 100%.  

Thanks for the replies! I assumed as soon as I hit 1,000 hours of service I would be ok to submit my 2 weeks notice, but I wasn’t sure if I’d have to see it vest in my account first.

I definitely want to submit my 2 weeks notice after I hit the 1,000 hours just in case they would tell me to walk right then and there. Highly unlikely, but you never know.

1 hour ago, Vested2020 said:

Thanks for the replies! I assumed as soon as I hit 1,000 hours of service I would be ok to submit my 2 weeks notice, but I wasn’t sure if I’d have to see it vest in my account first.

I definitely want to submit my 2 weeks notice after I hit the 1,000 hours just in case they would tell me to walk right then and there. Highly unlikely, but you never know.

Good plan!