There are several types of retirement plans that either contribution or defined plans. What are three-year vesting contribution and five-year vesting benefit plans referred to as for qualified plan vesting schedules?

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Three-year vesting contribution and five-year vesting benefit plans are referred to cliff vesting for qualified plan vesting schedules. Cliff vesting is employer matching funds at 100 percent after three-years for contribution plans and five-years for benefit plans. For contribution plans or benefit plans that are two- to- six-year vesting are referred to as graded vesting.

There Are Several Types of Retirement Plans That Either Contribution