Are there limitations regarding how long an employer may require someone to work before they are 100% vested?
Yes. Under federal law, most employer-sponsored retirement plan programs must provide that employees who work at least 1,000 hours per year must be 100% vested after accruing seven years or less of vesting service. However, the federal regulations governing vesting are quite complex and there are exceptions to the general rule. If you have questions regarding the vesting schedule in your employer’s plan, you should consider talking to someone in your Human Resources department.
