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Become applicable or exercisable. A term mainly used on the context of employee stock ownership or option programs. Employees might be given equity in a firm but they must stay with the firm for a number of years before they are entitled to the full equity. This is a vesting provision. It provides incentive for the employee to perform.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


The process by which an employee with a qualified retirement plan and/or stock option becomes entitled to the benefits of ownership, even if he/she no longer works at the company providing the retirement plan or stock option. Vesting occurs after an employee has worked at the company for a certain number of years; once vesting occurs, the benefits of the plan or stock option cannot be revoked.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


To give immediate rights in property, even if possession or enjoyment will be delayed until later.The question of when property rights vest is critical to future interests, taxation, and creditors' rights.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
However, RRA '93 Section 13207(a)(2)'s elimination of the cap on the 2.9% combined employer and employee medicare portion of FICA will result in additional medicare taxation as the vested deferred compensation benefit falls into the FICA wage base.
The court observed that, in the past, retiree health benefits were routinely modified or reduced - but that neither the union nor any retiree had voiced objections that such changes impaired vested rights.
Addressing the degree of interest in property necessary to be eligible for the annual exclusion, the court stated that Crummey did not require or imply that beneficiaries of a trust have a vested present interest or vested remainder interest in the trust corpus or income in order to qualify the gift for the annual exclusion.
A note of caution is in order regarding withdrawals or hardship distributions from defined contribution plan accounts that are not fully vested. Generally, the only nonvested account in such a plan consists of company contributions (e.g., across-the-board or matching contributions).
Vested also operates Vested Ventures, its investment practice; VestedIQ, a tech platform; and plans for further expansion into new business lines in the coming 12-18 months.
His role at Vested Ventures will include identifying strong investment opportunities for the fund, structuring investments, and integrating the fund's portfolio with the industry-leading services Vested provides.
Vested was founded in early 2015 by entrepreneur Lorne Abony to address the burgeoning student debt crisis.
In recent guidance, the IRS has applied its post-2004 definition of "deferred compensation"--essentially, any amount of compensation the right to which is vested in one tax year but which is paid in another--to define the types of assets subject to Sec.
In fact, the one vested person we never question is the altar server.
These include cases in which employees forfeit an option before it is vested, the company cancels an option after vesting or an option expires unexercised, typically because it is underwater.
However, companies that elect to recognize awards ratably are subject to a "floor" (the cumulative compensation cost cannot be less than the awards that are legally vested at any point in time).
Prior to the legislation, funded nonqualified deferred compensation arrangements were taxed as they vested, but unfunded arrangements were only taxed when amounts were actually or constructively received, typically much later.