Is it worth leaving a toxic job before your 401K fully vests or do you stick it out to get that company match vesting?

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Find a way to protect your mental health, if you can, for the next 6 months. I recommend Mark Manson’s book, The Subtle Art of Not Giving a Bleep. Good luck.

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If you are suffering mentally and now physically,. Please see a doctor and get help. At the very least you can apply for short term disability and get you a mental break if you are suffering. Your health matters over everything

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If you’ve got another offer just negotiate a signing bonus to offset the missed vesting

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Consider:

- How much will you lose? If significant, then stay.

- How old are you? If you are younger, you could make loss later. Older, you may not.

- Do you have another job lined up? The Tech job market is terrible right now and it isn't a good time to be looking for work.

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Well, I ended up leaving a very toxic 6 figure job before even having another offer lined up! Lol can’t really weigh in much on this scenario but I do agree with post about creating a break in between jobs :) I was completely stressed and anxious everyday to the point that my pinky finger’s tremor was triggered to max! Now going on almost 3 mos without work (yes, this job market is difficult but thankfully am able to live off savings), I’ve been using the time to get much needed rest (and pinky stopped shaking!). I recently spoke to recruiter of another company that seems interested in my experience and if offered would be a greater salary bump than my former. So I’m floating on the water, hoping on God, waiting to see what comes next. But do I regret leaving my toxic work environment with terrible co workers? Not one day! Feels great to be free! And to have the power to get out from under abusive boss control! :)

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I’d prob wait 6 months for the $25K pension if I’m understanding that right.

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But for OP — you should clarify for those who missed it that you have a soft offer waiting for official offer that comes with $70k more salary. That’s a crucial piece of info and deciding factor not mentioned in the opening post. Scew the $30k vesting loss —- with the much higher salary you’ll catch up and way surpass your investment loss.

Did the offer become official yet? What a sigh of relief and huge mental gain if you can leave a toxic environment with a much better offer.

With $70k more - max out your 401k contribution and invest the rest and in 1 quick year you’ll surpass the vested loss from the current company. You’ll continue to save/invest much more in subsequent years.

I don’t see the benefit of skipping out on a substantially higher paying job just to save $30k vested loss? You’ll come out way ahead with the new job.

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Depends how much

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Yep the disengaged squatter move is 🔥

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For me the key factors are 1- is the workplace impacting my physical or mental health in a meaningful way. 2- how much money will I lose out of if I leave prior to meeting the vesting period. 3- how long will I have to stay in the situation in order to be fully vested. If I only have 6 months it’s an easier decision than sticking around for 2 years. Best of luck!

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Always good to leave a toxic job. But know you are leaving at a touch time especially in tech, if that is where you want to end up. Applying for jobs in tech is not what used to be. Its a dog eat dog world.

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I would leave as the OP stated they have a new soft offer and waiting for it to become official as it pays $70k more - simply max out your 401k contribution and invest the additional income and you’ll soon make up and surpass the lost vesting $ from the current company.

Plus it’ll be a huge mental health plus to get away from the current toxic environment.

That’s a big piece of info about the potential new soft job offer and just waiting for the official offer for $70k higher salary that was missing from the opening post but added to a reply later.

Leave after you’ve found a better job.

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From personal experience, no company match is worth more than your mental health.

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Absolutely! Plus the OP is getting a new job offer for 70k more in salary!

Screw the $30k vesting loss - the OP can easily and quickly make that up with maxing 401k contributions and investing additional $$$ from the higher salary.

Start looking now - it could very well take 6-12 months anyway.

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Most companies that leverage company matching to vesting will have some degree of toxicity. Secure the next job and move on. You might find that your next job will show up just after fully vested happens.

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Not enough information to comment.

Further information from OP in the replies

Consult with your spouse & an employment lawyer on this. Risk of harm to yourself from the toxicity will dictate the urgency. Don’t act rashly or out of anger - it will only lead to further problems.

Negotiating on a signing bonus, salary, and vacation time, but it’s looking good! Hoping to have an official offer by the end of the week

Absolutely, your sanity is more important

How do you define toxic? What's happening exactly?

Vestments usually means receiving the company match. You can leave with what you put into the 401k, but you won't get the match. The questions are: is the toxic environment worth receiving the match? and how much longer do I have to wait until vesting?

If I left today I’d get 80% of the company match on my 401K. But it’s 0% on the pension. If it was just the 401K, I’d leave immediately but the pension is the larger chunk

So, your employer has 2 types of plans (defined- where they put money aside for your retirement) and Deferred (401k where you put money aside for retirement?

No, 401K is defined contribution since I put money in and they match. Pension is defined benefit since employer puts money aside but I can’t contribute.

Mental health should take a priority as long as you can earn money somewhere else. The 401k can be transferred to another company that cares about you more which will help you care about yourself more.

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