Vesting

Bob has $10,350 in his defined contribution plan at work. Of that balance $7,573.25 comes from his own contributions and $2,776.75 comes from his employers. The plan uses the 7-year step vesting schedule given in this section of the text. How much of his plan balance would Bob keep if he leaves his job now, assuming he has 5 years and 3 months of service?

SCHEDULE

7-YEAR 20% STEP VESTING Years of Service Completed Vesting Percent