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Question 1: How the Vesting Schedule Affects Employee Assets An employee who separates from service prior to becoming 100% vested will forfeit the unvested portion

image text in transcribed Question 1: How the Vesting Schedule Affects Employee Assets An employee who separates from service prior to becoming 100\% vested will forfeit the unvested portion of his or her account balance. The number of hours of service performed by the employee determines the employee's vesting service for each year. Assume an employee who performs at least 1,00o hours of service for a year is credited with one year of vesting service for that year. Vesting Schedule and Employee Assets A. The ABC Corporation's profit-sharing contributions are subject to the following graded schedule: ABC Corporation requires each employee to perform 1, ooo hours each year in order to be credited with one year of vesting service. Larry, a part-time employee whose 401(k) account had total employer contributions of $5,400 at the end 2013. Larry performed the following hours of service for these years: Larry resigned from ABC Corporation in January 2013. How much of the $5400 contributed by his employer is Larry entitled to take with him? If he contributed on his own as well, how much of his own contributions is Larry entitled to take

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