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60 votes

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

Yes. Any contributions you make to your own 401(k) are yours - irrespective of when the contributions were made. Contributions made to your 401(k) by your employer might be subject to a vesting ...
brhans's user avatar
  • 1,620
28 votes
Accepted

How to compute worth of my equity?

It seems like I hold only $1 because 100,000*$0.00001 = $1. No - you have the right to buy stock at $0.00001 per share. Presumably, the stock will be worth more than that, so your "profit" will be ...
D Stanley's user avatar
  • 137k
24 votes

Why can I not buy fractional stock, but see fractional amounts vested?

Fractional shares are interesting in that they don't really exist. Most companies (nearly all) are set up such that the smallest holding any entity can hold is a 'share'. This is really a hold-over ...
Steve's user avatar
  • 349
21 votes
Accepted

Why can I not buy fractional stock, but see fractional amounts vested?

Whether you can buy fractional shares is solely up to whatever broker you're working with (and potentially what type of account). There are plenty of brokers that will allow you to buy fractional ...
Justin Cave's user avatar
  • 27.3k
19 votes

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

As others have noted, you are always immediately vested in your own contributions. For employer contributions, it is not legal to be totally unvested after 4 years of full-time service. If they have ...
jjanes's user avatar
  • 1,181
19 votes
Accepted

Why did accelerated vesting apply to the CEO but not regular employees of Twitter?

Based on news reports, this was a "golden parachute" within his contract that accelerated his equity awards if he were terminated within 12 months of a "change of control". It's ...
D Stanley's user avatar
  • 137k
18 votes

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

In the early days of 401Ks (think 1980's) the vesting schedules were not as regulated - so it is possible that some company had that complex a vesting schedule. The purpose of a vesting schedule is to ...
mhoran_psprep's user avatar
14 votes

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

Just because you are fired/quit/retire you don't lose access to logging into the 401(k) website. As has been said already you own 100% of your contributions, but you own someplace between 0 and 100% ...
mhoran_psprep's user avatar
10 votes

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

I've never heard of a vesting schedule which you describe. Your co-worker is right: it (technically, a graded schedule) starts from date of employment (which includes situations where you're eligible ...
RonJohn's user avatar
  • 50.7k
9 votes
Accepted

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

You are responsible for 0 of the debt. If the partners try to force a liquidation, they are liable to damages TO YOU. The company has a value. As you said: Due to favourable cashflow with our ...
TomTom's user avatar
  • 11.5k
9 votes

How to compute worth of my equity?

Cliff period is defined as that period until you vest any options. So if your employment is ended at 2 months 29 days, then you would have zero vested options. Waiting one more day gives you 8.33% ...
Pete B.'s user avatar
  • 76.7k
8 votes
Accepted

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

Any 401k plan that I've been in, the vesting schedule goes by the date you started work at that company. Like my last job said you were 20% vested after 1 year, 40% at 2 years, 60% at 3, 80% at 4, and ...
Jay's user avatar
  • 22.8k
7 votes

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

The last time I switched companies the old company had a vesting policy that allowed a 5 year gap in employment. If the employee returned before the 5 year deadline then they would continue along the ...
mhoran_psprep's user avatar
5 votes

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

It's your account. Your contribs are your money. You will note that if you were given "online" (app or website) access to your 401K account, this is a completely different credential at a completely ...
Harper - Reinstate Monica's user avatar
5 votes
Accepted

What are the most common partner equity distribution for startups?

If you watch episodes of shark tank, you might gain some insight into the uniqueness of deals that are dependent upon a myriad of other factors. Having to choose, the three will typically split the ...
Pete B.'s user avatar
  • 76.7k
5 votes

How can unvested assets land in one's Self-Directed Brokerage 401(k) account?

"Unvested" just means that the employer has contributed the amount (on paper, at least) but can claw them back if you terminate employment or for some other reason that would violate the ...
D Stanley's user avatar
  • 137k
4 votes
Accepted

When are RSUs taxed for pre-IPO company?

Also from the page you refer to is: At newly public companies, grants made before the initial public offering (IPO) may also require a liquidity event (i.e., the IPO itself) to occur before the ...
TripeHound's user avatar
  • 9,170
4 votes

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

What financial consideration would a company have when changing from Plan A to Plan B? Employees get access to some of the RSUs sooner, but the overall vesting period increases, so it's a trade-off. ...
D Stanley's user avatar
  • 137k
4 votes
Accepted

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

There are two dates that matter for vesting in this situation: Your effective start date (1/1/15 in this example) 2 years after that start date (1/1/17 in this example) If you left the company on 12/...
kponz's user avatar
  • 943
4 votes
Accepted

Can an employer make a 401k vesting schedule worse?

My interpretation of the IRS link you provided is that any amount of existing employer contributions must follow the least restrictive of the old and new vesting schedules, AND, any participating ...
TTT's user avatar
  • 47.2k
3 votes
Accepted

What Shares Do I Actually Have?

Tax wise, you simply report the income from your units like any other shareholder or LLC member it's just at some point the income will go away. And go away it will, unless you demand your units be ...
KevinRethwisch's user avatar
3 votes

Transfer of stock of non-public company after vesting

If the company is non-public, your hands are tied. Most startups have a Stock Option Plan with specific rules on the shares. In almost all cases, they have a Transferability clause preventing ...
Chris Lu's user avatar
2 votes

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

This varies by company. You'd have to look at the fine print of the vesting agreement. If it's not spelled out there, I'd ask someone in HR or at a level to commit an answer in writing.
JTP - Apologise to Monica's user avatar
2 votes

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

The old vesting plan is unusual, the new vesting plan is much more common. I'd suspect that the company had an unusual vesting plan for some unusual reason and now that the company is getting more ...
David Schwartz's user avatar
2 votes

How to compute worth of my equity?

First of all, these are pretty much options in name only: unless the company goes bankrupt (in which case, "options" and "shares" would be equally worthless), the price per share is going to more than ...
Acccumulation's user avatar
2 votes
Accepted

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

Does this make sense? I'm concerned that by buying shares with post tax income, I'll have ended up being taxed twice or have increased my taxable income. ... The company will then re-reimburse me for ...
D Stanley's user avatar
  • 137k
2 votes

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

I'd early-exercised 75% of my grant at $5 and (later) exercised the remaining portion at $2. So did you actually pay the money and got "X" unvested shares? I'll be leaving the company; and they'll ...
Dheer's user avatar
  • 57.1k
2 votes

What are the most common partner equity distribution for startups?

Often, an equity agreement is based on whoever will contribute most to the company’s ultimate success. For example, if Bill Gates were to do absolutely nothing other than invest a nominal amount of ...
Rocky's user avatar
  • 24.1k
2 votes

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

This is my understanding: By law, companies are required to vest a company match using a graded or cliff plan. If they use the cliff plan, they must vest no slower than 100% at 3 years (this is ...
Mattman944's user avatar
  • 1,718
2 votes

How does stock vesting and cliffs work for employment compensation?

What would be the exact amount of stock that you actually receive in/after year 1, 2, 3, 4, and say 5? It depends on the value of the stock at the time of the grant. Typically stock grants vest ...
D Stanley's user avatar
  • 137k

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