Definition
The schedule on which employer-contributed money (401(k) match, equity grants) becomes truly yours. Your own contributions are always 100% vested; leaving before a vesting date can forfeit employer money.
Why it matters
Vesting dates are real money with a calendar attached: quitting a month before a cliff can cost thousands. Every job-change decision should include a look at the vesting schedule.
Example
An employer match vests 20% per year over five years. An employee leaving after year two keeps their own contributions but only 40% of the $10,000 match; waiting one more year would keep another $2,000.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.