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. Generally, an employee who performs at least 1,000 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: Years of Vesting Service Vested Percentage 1 20 2 3 40 60 80 100 4 5+ ABC Corporation requires each employee to perform 1,000 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: Credit for Vesting Service (Yes or Year Hours of Service No) 2008 600 1,152 1,010 800 2009 2010 2011 2012 (1,012 2013 40 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