Being vested in a retirement plan refers to the ownership of the contributions made to the plan by both the employee and the employer. When an employee is fully vested, it means they have earned the right to the full value of the contributions made to their retirement plan, including any employer matching contributions or other employer contributions. On the other hand, if an employee is not fully vested, they may only be entitled to a portion of the contributions made to their retirement plan, depending on the vesting schedule set by the plan. Vesting schedules vary by plan and can be based on years of service or a graded schedule where the percentage of vested funds increases over time. For example, a retirement plan may have a vesting schedule that allows employees to become 100% vested after five years of service, meaning they would be entitled to the full value of all contributions made to their retirement plan after completing five years with the company. It's important to note that being vested in a retirement plan only determines ownership of the contributions, not the ability to access the funds. The ability to withdraw funds from a retirement plan is typically governed by the plan's rules and regulations, as well as any applicable tax laws. It's always a good idea to consult with a financial advisor or the plan administrator for specific details about your retirement plan's vesting schedule and withdrawal rules.