I have a complicated 401k situation.
I had a contract job and the contract I was on got cancelled. I did not voluntarily quit, and I was not fired with cause. My contract was cancelled due to a restructuring of my company's contract.
I have my 100% vested contributions I made, of course. My contracting company also had a matching contribution. This contribution is 0% vested. Normally, in such a circumstance I understand that I will not get any of the balance which is not vested.
My account is currently showing both the vested and not vested balance. This is because in theory, if I return to the company and work another year (won't happen) at some point in the future, then the not vested portion will be vested.
I know that if I roll it over to my new employer's 401k account I will immediately forfeit it all.
However, I do know there is a rule that if the employer terminates the 401k plan, that they have to immediately make all contributions 100% vested.
Before I lost my job, I was told that they are planning on switching investment companies in the near future and that they will switch to matching contributions being 100% vested immediately with the new company.
I'm thinking of holding the money in that account until they switch companies, hoping for one of two scenarios:
They end up vesting me 100% after the switch because of the new policy and/or the new investment company won't be able to track separate vesting policies. Note that there's no guarantees that they actually will change the policy as I was told - those were "plans" and plans are always subject to change.
Perhaps changing their investment company constitutes a "termination" of the original 401k therefore entitling me to 100% vesting.
My question to this community is, does the "termination" rule apply as I stated in #2 above? Would they have to vest my balance? Or may I still end up having to forfeit that money?