Jamie has worked for ABC Printing for 5 years. During this period, ABC Printing has contributed $25,000 to her noncontributory retirement plan. Assuming ABC uses cliff vesting, the longest period allowed, how much will Jamie be able to roll into an individual retirement account (IRA) if she leaves ABC Printing?
A) $0
B) $5,000
C) $10,000
D) $20,000
E) $25,000

Question

Quizplus · Accepted Answer

Under a cliff vesting schedule, an employee becomes 100% vested in their employer's contributions to a retirement plan after a certain period of service, which, according to federal law, cannot exceed 3 years for cliff vesting schedules. Since Jamie has worked for ABC Printing for 5 years, she is fully vested and can roll the entire $25,000 into an IRA.

Jamie Has Worked for ABC Printing for 5 Years