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401k Matching Question
Posted on 6/2/14 at 4:02 pm
Posted on 6/2/14 at 4:02 pm
This is the policy my company has in place.
other places Ive work had it pretty straight forward-we match 5% or we match 3% of your salary.
the language is tripping me up a little bit, anyone care to put it in layman's terms.
quote:
is obligated, under the deferral matching provision of the plan, to match 25% of employee deferrals, up to 1.25% of the annual compensation of each participant
other places Ive work had it pretty straight forward-we match 5% or we match 3% of your salary.
the language is tripping me up a little bit, anyone care to put it in layman's terms.
3
Posted on 6/2/14 at 4:04 pm to Happygilmore
They will match 25% of what you contribute, until their contribution reaches 1.25% of your annual salary.
So, to max out their match, you need to contribute 5%.
So, to max out their match, you need to contribute 5%.
This post was edited on 6/2/14 at 4:05 pm
Posted on 6/2/14 at 4:06 pm to Happygilmore
sounds like for every dollar you put in they match 25 cents and they only match up to 1.25% of your salary
so if you but in 5% of your salary, you max out getting a whopping 1.25% match...
so if you but in 5% of your salary, you max out getting a whopping 1.25% match...
Posted on 6/2/14 at 4:07 pm to GoCrazyAuburn
i figured as much, it just seemed low to me as the other places i have worked were 3% and 5%
Posted on 6/2/14 at 4:07 pm to Happygilmore
Its pretty low, but I've seen lower.
Posted on 6/2/14 at 4:26 pm to Happygilmore
Be happy. My last job matched 0%.
Posted on 6/2/14 at 7:52 pm to TigeRoots
Yep, in some industries there's no such thing as a 401(k). The OP should look around at the direct competitors of the firm he/she's working for and see what the industry standard is as to matching. I wouldn't say a 401(k) program is ever a primary reason to stay or leave a company,but it does give one a window into the mentality of management.
NOTE: They are very expensive programs for small businesses. Even employers which make no direct contribution to their employees accounts can incur annually $20k + in "Administration" costs for just offering a fund.
NOTE: They are very expensive programs for small businesses. Even employers which make no direct contribution to their employees accounts can incur annually $20k + in "Administration" costs for just offering a fund.
This post was edited on 6/2/14 at 7:53 pm
Posted on 6/2/14 at 7:55 pm to soccerfüt
quote:
soccerfüt
Exactly.
Posted on 6/2/14 at 8:04 pm to soccerfüt
quote:
NOTE: They are very expensive programs for small businesses. Even employers which make no direct contribution to their employees accounts can incur annually $20k + in "Administration" costs for just offering a fund.
This was the case for us, so we shut it down only it incur even more fees..... Glad we qualified for a SIMPLE Ira plan that has been great....no admin fees
Posted on 6/2/14 at 8:07 pm to Tigerpaw123
^A good workaround.
Posted on 6/3/14 at 9:46 am to soccerfüt
Does it make any difference (reflect better or worse) that it is an ESOP company. I cant enroll in anything for the first year, but just trying to get a grasp on it all. First time working for an ESOP
Posted on 6/3/14 at 8:36 pm to Happygilmore
ESOPs = Fables
Seriously, I know nothing about it, I'd be hesitant investing all (or a majority of) my shekels in one place. Diversification limits exposure. Talk to a CFP about this once you have the particulars.
Seriously, I know nothing about it, I'd be hesitant investing all (or a majority of) my shekels in one place. Diversification limits exposure. Talk to a CFP about this once you have the particulars.
Posted on 6/4/14 at 9:20 am to TigeRoots
quote:
My last job matched 0%.
Yepper, that only recently changed at my current employer. They eliminated the Pension Plan and switched to a 2% match this year.
This post was edited on 6/4/14 at 9:21 am
Posted on 6/4/14 at 9:44 am to wiltznucs
MY last company matched 50% of your contribution, up to 6% - (You put in 6, they match with 3)
My current company has gone through several 401K related changes the last few years. When I hired in they gave 10% of salary to your 4501K once per year. That was changed to 8%. Then to 4% + dollar for dollar match of 4%. Now we are at dollar for dollar match of 4% with an additional 4% possible if revenue numbers are met.
My current company has gone through several 401K related changes the last few years. When I hired in they gave 10% of salary to your 4501K once per year. That was changed to 8%. Then to 4% + dollar for dollar match of 4%. Now we are at dollar for dollar match of 4% with an additional 4% possible if revenue numbers are met.
Posted on 6/4/14 at 9:07 pm to Chris4x4gill2
My employer guarantees 50% match up to 6% earnings.
And every year based on company performance (revenues and profits), they add up to an additional 50% (applied on the following year's pay).
It ranges from an additional 18% up to as much as an additional 43%.
It definitely keeps us focus on why we are employed (productivity).
And every year based on company performance (revenues and profits), they add up to an additional 50% (applied on the following year's pay).
It ranges from an additional 18% up to as much as an additional 43%.
It definitely keeps us focus on why we are employed (productivity).
Posted on 6/5/14 at 7:43 am to meansonny
Mine matches dollar for dollar the first 6%.
My old company put in 3-5% of your salary based on years worked then matched dollar for dollar the first 5% you put into the plan.
My old company put in 3-5% of your salary based on years worked then matched dollar for dollar the first 5% you put into the plan.
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