FINRA Series 6

Answer: C - Under the rules of ERISA, all private-employer sponsored retirement plans must provide a specific vesting schedule under which all participants in the plan will become 100% vested after having been in the firm’s employ for seven or fewer years. The firm may require that an employee have at least two years of service prior to participating in the plan, even if the employee is 21 years old, but this service requirement may not exceed two years. There is no requirement that the plan be a defined contribution plan.