457 Vesting-- When Do Amounts Vest If Plan Is Silent? in 457 Forum Posted February 9, 2009 · Report reply Also-- I appreciate your feedback and citing to that regulation, but what the regulation is telling us basically is that amounts are not counted against the contribution limits until they are vested. It does not tell us a default rule for WHEN the amounts actually vest, as far as I can tell... Am I missing that somehow? The examples show how if the employer contributions and employee contributions both vest in the same year, it can exceed the contribution limits and potentially cause problems... but both employer contributions and employee contributions are included in the "annual deferrals" amount that is defined in the regulation. Clearly, the rule is not that 100% of employer contributions vest immediately-- plans can provide otherwise if they choose to. The question is, do employee contributions need to vest immediately, or can they also have a vesting schedule or outside vesting date making them forfeitable? If not, what is the rule similar to a 411 rule that would apply to a 457 plan? And if the plan is silent, what is the default rule for when amounts vest?