I am wondering if staying the extra year to become vested is pointless if I will not be eligible to the employer matching contribution due to cashing out since I am only 30 years old?
If you are vested you are entitled to the employer match, but please reconsider the cash out. Rather, rollover to your new employers plan or an IRA of your own. If you cash out you undo all of the good work you've done getting an early start saving, and that money will go to the IRS in the form of taxes and penalties instead of reaping compound growth for the next 30 years. DONT DO IT!
Matthew - you need to get a copy of your company's 401k plan "Summary Plan Description" and review it with someone in the Benefits Department or even call the Third Party Administrator. It is not uncommon for some plan sponsors to only match contributions if you are employed on the last day of the plan year, and under that condition you would not receive a match for the year in which you quit unless it was on that last day.
I'm a bit confused by your question. In the title, you say you are fully vested. In the description below, you state that you're wondering if you should stay the extra year to become vested. Thus, you're either fully vested, or you're not. Before rendering any suggestions to you, it would be helpful to both of us to know... Best Regards, Rod
Matthew, the amount you personally contributed is always yours and you can take it out when you leave. A good advisor will always suggest a tax-free rollover to an IRA rather than giving part of it to the government via taxes and a penalty. If your employer matched a percentage of your contribution, they may require you to work for a certain number of years (no more than 6) before you are fully vested in the employer match. Check with your employer’s benefits department to see what the rules are.
As I understand your question you are trying to decide whether it is worth it to stick around another year until you vest. Your concern is if you will lose matching funds if you are vested and younger than a certain age. The short answer is once you are fully vested, the funds belong to you regardless of your age.
What you do with your 401(k) plan funds if/when you leave the company is another issue...but I wouldn't "cash out". Rolling it over to another tax advantaged fund (IRA, 401(k), 403(b), TSP) is a better option.