Is an employee who leaves a company before the end of the year still entitled to the company match for the 403 (b) plan?
Whether an employee who leaves a company is entitled to the match depends 100% on what it says in the plan documents. There’s no law that dictates this. In fact, some companies have what’s called ‘vesting,’ meaning the employee can earn the amount, but the match doesn’t apply unless say, they stay for 1, 3 or 5 years as an example. Often the match details are provided in the employee’s offer letter, their retirement plan documents or the employee handbook. If the employee leaves before the match is provided, it’s quite likely they won’t receive the match. The plan documents provided by the employer are what determines this. Best!
Thanks Laura! I have researched our company’s plan documents also what has happened previously and have gotten the answer.
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