401k Match Not Vested Yet - Should I Still Leave?
You have an opportunity but your match isn't vested. Here's how to decide.
Key Takeaways
- 1Calculate the exact dollar amount of unvested match you'd forfeit.
- 2Compare to salary increase and career benefits of new opportunity.
- 3Consider asking new employer for a signing bonus to offset forfeiture.
- 4Don't stay in a bad job just for unvested money.
- 5If cliff date is within 3 months, it may be worth waiting.
- 6Your contributions are always 100% yours regardless.
Step 1: Calculate What's Actually at Stake
Log into your 401k and find:
- Total employer match contributed
- Your vested percentage
- Amount you'd forfeit = Total × (100% - Vested%)
- Example: $8,000 match × (100% - 60% vested) = $3,200 at risk
Step 2: Value the New Opportunity
Consider the full picture:
- Salary increase (annual value)
- Better 401k match at new company?
- Career advancement potential
- Work-life balance improvements
- Stock options, bonuses, benefits
Decision Framework
Use this simple test:
- **Forfeiture < 1 month salary increase:** Leave immediately
- **Forfeiture = 1-3 months salary:** Consider timing or negotiating offset
- **Forfeiture > 3 months salary:** Carefully weigh all factors
- **Cliff date < 3 months away:** Probably worth waiting
- **Miserable at current job:** Your health > any amount of money
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Frequently Asked Questions
1Can I negotiate a later start date to hit my vesting cliff?
Yes! Most employers are flexible on start dates, especially for experienced hires. If your cliff is 6 weeks away, ask if you can start after that date. Frame it honestly - most employers understand.
2Should I mention unvested 401k when negotiating?
Absolutely. It's a legitimate negotiating point. "I'm walking away from $X in unvested retirement benefits to join your team. Can we discuss a signing bonus or salary adjustment to help offset that?" This is standard practice.
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