Questions tagged [vesting]

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2
votes
1answer
105 views

Can an employer change a 401k plan to make it worse without notice?

I have been at my current employer for three years as of March 2020. As per my 401k I am to be 100% vested at year three. Today, 11/24/19 I received notice that the vesting schedule has changed to ...
4
votes
2answers
206 views

I left my job after a few months. I was not fully vested. Why is the non-vested amount still on my 401K plan?

I left my job after a few months. I was not fully vested. Why is the non-vested amount ($1000) still on my 401K plan? Why doesn't the employer just take the non-vested money away and put it in their ...
2
votes
0answers
57 views

What to do if company is not honoring vesting schedule in Pension Protection Act?

Let's say someone works for a company that lets employees contribute to a 401k, and the employer offers a match. Based on my read of the 2006 Pension Protection Act (beginning on p. 2 of the linked ...
1
vote
1answer
138 views

What Shares Do I Actually Have?

I have a pretty standard arrangement with an LLC I'm employed by. I have unvested units and a vesting schedule for when they become "vested" units. I used vested in quotes because the LLC's Operating ...
3
votes
1answer
225 views

Is it typical to wait 19 months for first employer 401K contribution?

I want to understand if these policies would be considered typical, better than average, or below average. An employer offers a matching contribution to 401K, details are: 0% vested in employer ...
24
votes
5answers
16k views

401(k) investment after being fired. Do I own it?

A friend was released from their job after 4 years, not vested. I understand 5 years are required to be vested. Are they entitled to the contributions they made to the 401(k)?
1
vote
0answers
164 views

Rules for cost basis adjustment of RSUs that vest causing a wash sale

I've read through a bunch of posts and couldn't find a definitive answer. In this example, I have RSUs that vest every month from my employer. Let's say I decide to sell 1 share of stock for a capital ...
6
votes
2answers
306 views

What are the most common partner equity distribution for startups?

Background I'm doing some due diligence regarding a US registered (Delaware C-corp) tech startup in Europe, where the founders are located and living in the EU. Although the business idea is very ...
1
vote
1answer
93 views

401(k) vesting when switching companies owned by same entity

Initially I worked for a company A. This company is owned by company B. A few years in, I transferred to company C, which is also owned by company B. I started a 401(k) with company A, ...
0
votes
0answers
56 views

Tax on vested shared Germany (analogue of 83b election)

In the U.S. they have something called 83b election, relevant when a founder have shares that are vested. To my understanding, one must file this election shortly after the company is founded, ...
1
vote
0answers
75 views

Do I have the right to insist on my options being 100% vested if they are for work already performed last year?

I am getting some stock options for work I already finished last year, but they said it needs to vest for tax reasons. My lawyer said I don't have to pay taxes until I exercise my options which ...
1
vote
2answers
127 views

What if the vesting period of a startup has not ended when it is acquired? [duplicate]

Suppose employee of a startup company has a vesting agreement, saying she can execute options for 1/4 of total package each year. What if only one year have passed and startup was bought. Which ...
0
votes
0answers
47 views

ICO token vesting if I quit

I am part of a post-ICO company that awards me tokens as part of compensation. My employment contract only mentions that x amount of tokens would be vested over y years with no cliff/any other vesting ...
1
vote
2answers
307 views

Why Would a Company Change Restricted Stock Units (RSUs) Vesting Plan?

My company gives out Restricted Stock Units (RSUs) each year. The RSUs used to vest 100% on the 3rd year after granting them. This year they have changed the plan, and instead they vest 25% of the ...
16
votes
3answers
3k views

How to compute worth of my equity?

I am a newly appointed consultant to a startup. I work in another organization which forbids me to receive any salary for being a consultant. However, I am allowed to have an equity. The startup ...
2
votes
1answer
366 views

I am a co-founder departing from a startup with debt, should I cover a portion of the debt on exit? [closed]

I'm a minority partner in an e-commerce startup, now departing due to personal reasons after being with the team for a couple of years. Founders agreement has a clearly outlined 4-year vesting ...
1
vote
1answer
2k views

When are RSUs taxed for pre-IPO company?

This is a more specific version of this question. If I receive RSUs from a pre-IPO company on a 4 year vesting schedule, when do my RSUs get taxed? Per this page: With RSUs, you are taxed when the ...
15
votes
3answers
3k views

If an employer matches 401k contributions, does each match have its own vesting schedule?

Consider the following example where an employer matches 50% of your 401k contributions, and there is a 5 year vesting schedule on the match. Your contribution Employer match Year 1 ...
1
vote
1answer
122 views

How does a typical vesting timeline work with respect to employer contributions?

I'm reading over some benefits documents Vesting Your contributions to the account are vested immediately. You are fully vested in company contributions after two years. If you were a ...
1
vote
1answer
530 views

Company RSUs vested, but they sold to cover when I wanted to pay tax

I was handed a contract last year by my American company, which is listed on the US stock market (I'm based in the UK with a UK subsidiary) whereby they would give me a number of RSUs each year for ...
7
votes
2answers
1k views

Can an employer make a 401k vesting schedule worse?

Say a person works for an employer for 2+ years based on the statement (promise?) that they will be 100% vested in their 401k employer match after 5 years. Is the employer then permitted to change the ...
1
vote
1answer
75 views

Unwinding unvested shares bought at different prices when departing a company in California

My company repriced their options and the price dropped. Let's say the price went from $5 to $2 (not actual numbers). I'd early-exercised 75% of my grant at $5 and (later) exercised the remaining ...
2
votes
2answers
923 views

401(k) not fully vested at time of acquisition

I've been working for AT&T for two years and nine months with a cliff vesting of 3 years my vesting date is April 15, 2016. It was recently announced on December 18, 2015 that IBM would be ...
0
votes
1answer
264 views

Do restricted stock units (RSUs) count as constructive receipt based on the percentage vested or only upon full vesting?

When am I liable for taxes? I know that I am not liable for taxes on the date of grant. Scenario: I have been granted an allotment of restricted stock with a 4 year vesting schedule by a publicly ...
3
votes
1answer
84 views

Transfer of stock of non-public company after vesting

Suppose an employee of a non-public company has "some" stock options. Can that person, after vesting, generally transfer the ownership of some of those (exercised) shares to another party? I want to ...
3
votes
1answer
100 views

403B vesting and giving notice

I have a 403B account that would become fully vested in March. I also have an opportunity to take a new job. If I gave notice before the vestment, but continued working through the vestment date, ...
2
votes
3answers
544 views

Are employer 401k matching contributions invested prior to vesting?

Do the employer match contributions to a 401k before they are vested go into the investments that are selected for the employee contribution?
9
votes
1answer
12k views

What happens to the gains or losses made on the non-vested portion of a 401k after you leave your job?

If you leave a company that matched 401k contributions before the vesting schedule is complete, the non-vested money is returned to the employer. I'm curious what happens to the gains/losses on the ...
4
votes
2answers
155 views

How to flip my options?

I was recently let go from my company due to a reduction in force, and I have received a letter saying I have vested options available for exercising. Although I would like to, I cannot afford to ...
1
vote
2answers
81 views

Can I transfer my 401k vesting period between companies owned by the same corporation?

I am leaving my current job at a company owned by a corporation. This same corporation also owns the company where my next job will be. My 401k has not yet vested - the cliff is about a year away. ...
2
votes
2answers
803 views

Is an investor of a startup subjected under a vesting schedule?

I have never invested and I'm so confused with what the startup has told me. They are my friends and I trusted them so I didn't do thorough research. (I know I know) They've cashed my check already, ...
5
votes
2answers
458 views

Vesting of my 403(b) Plan

About 5 years ago, I left my job, after being there only a year. I had a retirement plan at work that apparently had a 3 year vesting period. I did not know that. Apparently the employer did not ...
9
votes
1answer
367 views

If I have a pension with my employer and then leave, is the pension mine to take with me?

Is the answer to this different if I choose to leave, versus if my employment is terminated? Are the funds my employer contributes towards my pension fund treated differently than the ones I ...