When we talk about retirement plan vesting, we are referring to the process by which an employee gains full ownership of employer contributions to their retirement account. Vesting essentially means that the employee has earned the right to the employer's contributions over time. There are typically two types of vesting schedules: cliff vesting and graded vesting. In cliff vesting, an employee becomes fully vested in a retirement plan after a certain period of time, while in graded vesting, the vesting percentage increases gradually over time. It's important to note that vesting schedules can vary depending on the specific retirement plan and employer. Understanding the vesting schedule of your retirement plan is crucial for making informed decisions about your long-term financial goals and retirement readiness. If you have specific questions about your retirement plan's vesting schedule, it's advisable to consult with a financial advisor or your plan administrator for personalized guidance.