Jamie has worked for ABC Printing for 5 years.During this period,ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she leaves ABC Printing?

Question

Quizplus · Accepted Answer

Cliff vesting allows an employee to become fully vested in the employer contributions after a certain period of time, which is the longest period allowed. In this case, Jamie has worked for 5 years, which meets the requirements for cliff vesting. Therefore, she will be fully vested in the $25,000 contributed by ABC Printing to her non-contributory retirement plan. This means that Jamie will be able to roll the entire $25,000 into an IRA if she leaves ABC Printing. Thus, the correct answer is E: $25,000.

Jamie Has Worked for ABC Printing for 5 Years