Cliff Vesting - 401k Retirement Glossary
Cliff Vesting is when vesting of 401k retirement accounts occurs all at once, rather than a gradual phased out period of time. Instead of a percentage of your employer's 401k match-up contributions being vested over a phased out period of time, the vesting will occur all at once after a certain period of time, e.g 5 years.
Compare the traditional 401k Vesting schedule with the Cliff Vesting Schedule:
Traditional 401k Vesting Schedule
Cliff Vesting Schedule
is 401k Vesting and How Does it Work?