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Started By
Message
Company matching a 401k
Posted on 4/13/12 at 8:14 pm
Posted on 4/13/12 at 8:14 pm
The HR person at my company told me I had to contribute 5% and the company will match 4% into a 401k, not a 4% for 4% match.
Is this normal?
TIA
Is this normal?
TIA
8
Posted on 4/13/12 at 8:16 pm to Foot
yes
Posted on 4/13/12 at 8:17 pm to kaaj24
Thanks,, just wondering.
Posted on 4/13/12 at 10:02 pm to Foot
quote:
I had to contribute 5% and the company will match 4% into a 401k
make that your top investment priority
Posted on 4/13/12 at 10:50 pm to Foot
Maybe that's their shorthand way of saying 100% of 3% and 50% of the next 2%?
Posted on 4/13/12 at 11:45 pm to Foot
The exact terms aren't as important as the fact that it is free money. Grab it.
Posted on 4/14/12 at 3:12 am to Foot
Every company is different. Some less and some more. If you like the job anything extra they give you is gravy.... The question is do you have other offers or jobs you are looking at to compare against?
Posted on 4/14/12 at 8:26 am to Foot
I would advise you to know all the details about your match. My employer matches 4% per pay period up until I max out my contributions. This essentially means I have to plan my contributions to max out in my last pay period of the year if I want my full match. Say I contribute 17k in the first pay period of January. I would then get a 4% match on my pay for that period but since I'd have maxed out my 401k already, I wouldn't get any of the potential remaining 23 matches during that year since there's a 4% cap on what they'll match in any single period and they stop matching once you max out.
These things can get tricky. You need to know the details.
These things can get tricky. You need to know the details.
This post was edited on 4/14/12 at 8:30 am
Posted on 4/14/12 at 10:23 am to The Easter Bunny
quote:
make that your top investment priority
can't pass up free money
Posted on 4/14/12 at 11:35 am to RedStickBR
RedstickBR - that's a good problem to have.
Posted on 4/14/12 at 11:44 am to PlanoPrivateer
Yeah, it's nice to be able to max it out. The co. just wasn't very straightforward with you that that's the way it works.
Really, those who get the maximum benefit are the ones for whom 17k is exactly 4% of their total salary, i.e. they make 425k per year.
Really, those who get the maximum benefit are the ones for whom 17k is exactly 4% of their total salary, i.e. they make 425k per year.
Posted on 4/14/12 at 6:40 pm to RedStickBR
Thanks for the info, I'll be making the call on Monday. And no, I love my job, just got a promotion with the benefits. 
Posted on 4/15/12 at 8:09 am to Foot
Better than mine - I don't get any match!!
Posted on 4/15/12 at 1:41 pm to Foot
quote:
Money Board
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