Vesting

When your 401(k) money becomes legally yours and can't be clawed back. Inside a Solo 401(k) this is a non-issue, you're both employee and employer, so 100% of every contribution vests immediately. Vesting only matters in regular employer 401(k) plans where company match might use a 3-year cliff or 6-year graded schedule. The reason vesting still appears on your Solo 401(k) statement: the IRS uses the "vested balance" as the cap on how much you can borrow as a 401(k) loan (50% of vested, max $50,000).