Vesting Schedule Calculator
Balance and service to owned percent and dollars.
What it does
Employer retirement money vests on a schedule: leave early and part of it stays behind. Cliff vesting pays nothing until year three, then everything; graded pays 20 % yearly from year two to six. Service years unlock dollars.
The tool above applies both ERISA minimum schedules to any balance and prints owned percent with dollars. Your own contributions ignore the math entirely at 100 %. Plans can beat these minimums but never lag.
Labor Department vesting rules with IRS plan guidance set the cliff and graded minimums behind every private plan. Breaks in service and part-time counting live in plan documents that interpret the same federal floor.
Check before resigning, not after. Statements lag, anniversaries confuse, and forfeitures do not negotiate. HR confirms entry dates; this page previews the split.
How to use
- Enter employer balance.
- Enter years of vesting service.
- Pick cliff or graded schedule.
- Read owned percent and dollars.
- Read the schedule rule name.
- Confirm dates with HR before leaving.
Formula
- balance
- Employer-contributed balance.
- years
- Years of vesting service, 0 to 40.
ERISA minimums with whole or fractional service years accepted. Own contributions always 100 %. Plans may beat these minimums but never lag them.
Worked example
Example: 4 years, graded
$80,000 balance, 4 years of service, graded schedule.
- Balance $80,000 with 4 years under graded vesting.
- Graded pays 20 % per year from year 2.
- Four years vests 60 %.
- Owned: 80000 x 0.60 = $48,000.00.
- Two more years vest the rest.
Reference table
| Years | Cliff | Graded |
|---|---|---|
| Under 2 | 0 % | 0 % |
| 2 | 0 % | 20 % |
| 3 | 100 % | 40 % |
| 4 | 100 % | 60 % |
| 5 | 100 % | 80 % |
| 6 and up | 100 % | 100 % |
Limits
- Federal minimums only. Plans vary above them.
- Service counting follows plan documents.
- Breaks and part-time need HR review.
- Estimates, not plan statements.
Common mistakes
- Quitting months before a cliff.
- Counting calendar years, not service.
- Forgetting own money vests at once.
- Trusting lagging statements.
- Skipping HR confirmation.
Try it yourself
Quick checks. Answers sit tucked under each question.
$50,000 with 2 years on cliff?
Cliff pays 0 % under 3 years: 0% vested, $0.00 owned.
$100,000 with 7 years graded?
Graded at 7 years passes 6: 100% vested, $100,000.00 owned.
Questions
What are the two schedules?
Cliff: 0 % until 3 years, then 100 %. Graded: 20 % at 2 years rising 20 points yearly to 100 % at 6. Your own contributions vest immediately always.
What money vests over time?
Employer match and profit-sharing dollars. Elective deferrals and rollovers stay fully yours from day one.
What happens to unvested money?
Forfeit back to the plan or to other participants per plan terms. Leaving at 40 % vested abandons 60 % of employer money.
When does service start counting?
From hire or plan-entry date per the document, with breaks-in-service rules for gaps. Part-time years may count differently.
Can plans vest faster?
Yes, within legal minimums: faster schedules are common, slower ones illegal. Read the summary plan description for the house version.
Why does my statement disagree?
The statement lags and estimates confuse partial years. Count anniversaries from the plan entry date and confirm with HR before resigning.