401(k) Vesting Schedule Leaving Cost Calculator
Leaving before your 401(k) employer match fully vests can forfeit tens of thousands. Cliff schedules (lose 100% if you leave before year 3) cost more than graded (20% per year). Calculate exactly what you’d forfeit.
| Employer match balance | — |
| Vested percentage | — |
| Vested amount you keep | — |
| Forfeited amount (lost) | — |
| Future value of forfeiture at 65 | — |
| Years until next vesting milestone | — |
Leaving a job before your 401(k) employer match fully vests can forfeit tens of thousands of dollars — and most employees discover the loss only after they’ve accepted the new offer. Cliff schedules (0% vested, then 100% at year 3) are the most punishing; graded schedules vest 20-25% per year and are more forgiving. IRS rules cap maximum vesting at 3-year cliff or 6-year graded.
How Vesting Schedules Work
Your own 401(k) contributions (and Roth contributions) are always 100% yours immediately — vesting only applies to employer matching contributions. ERISA caps the maximum vesting at 3-year cliff (0% for 2 years, then 100% at year 3) or 6-year graded (20% per year starting year 2, fully vested at year 6). Safe Harbor 401(k) plans and many tech employers use immediate vesting. Always read your Summary Plan Description (SPD) — the schedule is hard-coded in the plan document and cannot be negotiated individually.
Negotiation Move When Switching Jobs
If you’re leaving with unvested match, calculate the dollar forfeiture and the future value of that forfeiture compounded to age 65. A $25K forfeiture at age 32 with 7% growth becomes $213K at 65 — a real number. Ask the new employer for a signing bonus equal to 50-100% of the forfeiture. Most employers will cover it because they would have paid the same total comp anyway. If you’re within 12 months of a vesting cliff and the new offer isn’t materially better, staying may be the higher-ROI move. Always run this math before signing.
Last updated May 2026. Sources: IRS Vesting Rules, DOL EBSA.