Retirement Accounts
Under ERISA's graded vesting schedule, an employee with 4 years of service is what percentage vested in employer contributions?
Under graded vesting, employees vest at 20% per year starting in year 2. At 4 years: 20% + 20% + 20% = 60% vested. Full vesting (100%) is achieved at 6 years of service. Employee contributions are always 100% vested imme
Complete Analysis & Legal Rationale
Under graded vesting, employees vest at 20% per year starting in year 2. At 4 years: 20% + 20% + 20% = 60% vested. Full vesting (100%) is achieved at 6 years of service. Employee contributions are always 100% vested immediately.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.