Do I lose my own 401(k) contributions when I leave?

No. Your own contributions and their earnings are always yours. Only employer matching money follows the vesting schedule, and that is the part a long break can affect. Ask for the vested percentage as of your last day and keep the statement with your separation records.

How long is a break in service?

It depends on the plan. Many plans measure a full plan year or twelve months, and some use hours of service instead of calendar time. The plan document is the authority, so request the definition line rather than relying on a rule of thumb or a prior employer.

Does quitting two weeks before a cliff date matter?

It can matter enormously. A cliff schedule vests nothing before the cliff date and everything on it, so a resignation timed just before the date forfeits unvested employer money. Put the cliff date and the separation date on one line before you send the notice.

If I come back, does my seniority restart?

Sometimes. Rehire rules vary by plan and by employer policy, and the written rehire eligibility line is what protects the outcome. Ask for your vesting position when you leave and confirm the new statement when you return; if the records disagree, ask which clause applies.

Break in Service: Pension & Vesting Restart Rules

A break in service restarts the benefit clock: pension formulas, match vesting, and seniority benefits can reset after a year away. The plan documents decide your restart, not your memory.

The One-Year Rule

Most plans treat 12+ months away as a break: pension accrual restarts, seniority resets, and some plans re-grade vesting from zero. Return within a year keeps continuity in many plans — the rehire date is the plan's clock, not your start day.

The 401(k) Side

Your 401(k) balance is always yours; employer match follows the vesting schedule, which can re-grade after a long break (see the vesting guide). Rollover decisions belong in the break window: the rules are in the rollover guide and loan traps in the loan guide.

The Rehire Window

Alumni rehires keep seniority in some plans — confirm in writing when you leave, and again when you return. The separation wording that protects rehire eligibility is in the separation document guide, and the internal-return rules in the transfer guide.

Put the rule into action

Write the letter with the free Final Paycheck Demand Letter generator. The state pages carry the local payout and notice windows, and the application tracker keeps the follow-up date in writing.

Put the rule into action

401(k) Vesting Schedule — what it means and what to do

Service credit definitions

Vesting and pension math runs on service credit, and service credit has its own definitions: years of service, hours of service, and the break rules that connect them. The plan document defines all three, and the words are not interchangeable.

Years of service count employment periods, usually from a stated start date. This is the number vesting schedules use.
Hours of service count worked hours, and a plan can define a minimum that a year must reach.
Plan year versus calendar year. A break is measured against whichever the plan names, so a gap that looks short on the calendar can cross a plan-year boundary.
Reemployment date. The clock for a break often restarts on rehire, not on the day you signed the letter.

Ask for the definitions in writing when you leave. The vesting calculator converts the dates into a vested percentage, and the vesting schedule and cliff vesting entries explain the two schedules.

Break scenarios and outcomes

The same gap produces different results depending on the plan type and the length of the break. Four scenarios cover the cases people actually face during a layoff or a career change.

Short gap, same plan. You return to the same employer within the plan year. Vesting percentage and accrued benefits usually continue unchanged.
Longer gap, re-grade risk. Some plans restart the vesting schedule for employer money on rehire. Your own contributions never reset; they stay yours.
Defined-benefit accrual. Pension formulas can restart, and a plan may freeze prior accrual instead of erasing it. Ask which.
Loan and withdrawal clocks. A separation can start a deadline on an outstanding loan. The repayment route is usually a rollover, not a cash distribution, and the tax consequence differs by route.

Two weeks either side of a cliff date can move tens of thousands of dollars. Before your last day, put the cliff date on the same line as your separation date, and keep both records in the separation tracker.

Rehire paper trail

Alumni returns are where service credit gets quietly restarted. Get three things before you leave, and again when you return.

A written statement of your vesting percentage and the next vest date as of your last day. The payout request letter is the usual place to ask, because vesting and accrued leave are handled in the same settlement.
The rehire eligibility line from your separation document. A neutral separation wording protects eligibility and the reference check answer.
The plan statement you receive after rehire, showing whether service continues from the first start date or restarts.

If the two statements disagree, ask which clause applies and keep both. Disagreement between an HR letter and a plan record is a documentation problem, and documents win those arguments.

Gap length	Typical plan treatment	What to confirm in writing
Under one plan year	Service continues; vesting unchanged	Next vest date as of your last day
Roughly 12 months or more	Break rules may re-grade employer vesting	Whether the schedule restarts or continues
Defined-benefit plan	Accrual may restart or may freeze	Whether prior accrual is preserved
Rehire within the window	Seniority may continue in some plans	Rehire eligibility line in the separation document

Before you rely on a date or an amount on this page, check it against the California job exit rules page and the New York job exit rules page, along with the resignation exit guide hub. Rules move, and those pages carry the current text.

Frequently Asked Questions

Do I lose my own 401(k) contributions when I leave?: No. Your own contributions and their earnings are always yours. Only employer matching money follows the vesting schedule, and that is the part a long break can affect. Ask for the vested percentage as of your last day and keep the statement with your separation records.
How long is a break in service?: It depends on the plan. Many plans measure a full plan year or twelve months, and some use hours of service instead of calendar time. The plan document is the authority, so request the definition line rather than relying on a rule of thumb or a prior employer.
Does quitting two weeks before a cliff date matter?: It can matter enormously. A cliff schedule vests nothing before the cliff date and everything on it, so a resignation timed just before the date forfeits unvested employer money. Put the cliff date and the separation date on one line before you send the notice.
If I come back, does my seniority restart?: Sometimes. Rehire rules vary by plan and by employer policy, and the written rehire eligibility line is what protects the outcome. Ask for your vesting position when you leave and confirm the new statement when you return; if the records disagree, ask which clause applies.

Breaks in service, forfeiture dates, and the service-credit clock are plan rules, and the payout rule for accrued leave on separation is a state rule graded in this build. Confirm the service-credit language with the plan administrator, confirm the PTO payout rule with the state agency named on the state rule pages, and run the balance, the cap, and the rate through the PTO payout calculator before your last day.