Types of vesting schedules.

There are 2 types of vesting schedules. Cliff vesting and graded vesting. Simply put, when an employee contributes to a 401K plan, they are fully vested with the contributions they provide. When an employer matches their contribution, the employer can choose either Cliff vesting which allows the company not to vest its contribution to the employee for up to 3 years, after which they 100% vest their contribution. An employer may also choose Graded vesting. This type of vesting gradually vests the employer contribution over a maximum 6 year period after which, the company must vest 100% of their contribution. Contribution limits are in place so the sum of the employee and employer contributions is limited to less than 56,000 if under the age of 50 of 62,000 for employee who are at least 50 or 100% of the employees compensation for the year in 2019. The employees 401K contribution is limited to 19,000 for those under 50 or 25,000 for those who are 50 or older. The example in the book clearly defines this. If you are under 50 and in 2019, the employee maxed out their contribution of 19K, the employer can only contribute 37,000 which is the difference between the 56,000 and the employee contributed amount of 19,000. My company doesn't contribute so much. My company contributes a max of 6% if the employee contributes 6% - if the employee contributes less than 6% - The company will match dollar for Dollar, however if the employee chooses to contribute more than 6% the company maxes at 6%. My company also chose to do Graded vesting whereby 100% of their contribution will 100% vest in year 5. 10% in Year 1, 20% in Year 2, etc. Its their way of trying to make sure their investment has a solid ROI. Additional Information: What are the tax implications of participating in a 401(k) plan? Please explain in your own words the concepts of vesting schedule and contribution limits. Do do these two concepts relate to your interest in participating in a 401(k) program, if available where you work?