Tag Page Vesting

My employer only matches 20% of my 401k. What does this mean exactly?

I just started a new job and I need some help decoding my benefits package. My company says they match 20 percent of my 401k contribution on a per-pay basis. This seems incredibly low to me. I'm trying to figure out if this means if I put in $100, they only put in $20. I need to know if that math is accurate. To make things even more complicated, they have a tiered vesting schedule that really slows things down. I do not get fully vested until I hit five years of service. Before then, I only get 20 percent between years two and three, 40 percent between three and four, and 60 percent between four and five. It feels like they are making it really hard to get the money. Financial experts and HR pros, I need your input. First, is my interpretation of the 20 percent match correct. Second, is this policy with the five-year vesting schedule actually considered "good" in today's job market or is it a major red flag I should worry about? #401k #RetirementPlanning #PersonalFinance #MoneyAdvice #Vesting #Benefits