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In addition to the Small Business Job Protection Act of 1996 encouraging small businesses to allow employees to enroll into a 401(k), what percentage of vesting begins immediately for the employee

User Ryandlf
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1 Answer

4 votes

Answer:

100%

Step-by-step explanation:

401(k) plans are financial provisions that guarantee financial security after retirement. Prior to the Small Business Job Protection Act of 1996, these provisions were bogus and difficult to understand/comply with by businesses. The Act simplifies the requirements and allows employees to enroll in the 401(k) plans where the annual contributions testing is bypassed. Employees vest 100% of their salary. This means that they cannot forfeit all the money contributed. After retirement, they can benefit from their deferrals and profits.

User Abhay PS
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