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Benefits of a new job.
Posted on 4/1/25 at 8:30 pm
Posted on 4/1/25 at 8:30 pm
This is not for me but a friend asked this question. What does it mean if a company will match 50% up to 6% of employee contribution in 401k? Never saw it stated that way.
5
Posted on 4/1/25 at 8:32 pm to tigger4ever
Sounds like if you put in 6% they will put in 3%
Posted on 4/1/25 at 8:40 pm to tigger4ever
It means they will match 50% of the employee’s contributions up to 6% of the employee’s salary. Pretty common.
Edited for an example:
Say he makes 100k a year salary.
If he puts 10% in 401k, they match 5%.
If he puts 12% in 401k, they match 6%.
If he puts 15% in, they still only match 6%.
Edited for an example:
Say he makes 100k a year salary.
If he puts 10% in 401k, they match 5%.
If he puts 12% in 401k, they match 6%.
If he puts 15% in, they still only match 6%.
This post was edited on 4/1/25 at 8:44 pm
Posted on 4/1/25 at 8:45 pm to tigger4ever
Here’s a real world example:
If you work 8 hours a day making 14.58 an hour you will earn $116.67 a day.
And you want to max your 401K match you would put in 6% of that 116.67 per day
which is $7 per day into your 401K
and your company would match 50% of that $7 that you contribute
which means they give you about $3.50
If you work 8 hours a day making 14.58 an hour you will earn $116.67 a day.
And you want to max your 401K match you would put in 6% of that 116.67 per day
which is $7 per day into your 401K
and your company would match 50% of that $7 that you contribute
which means they give you about $3.50
This post was edited on 4/1/25 at 8:47 pm
Posted on 4/1/25 at 8:48 pm to Breesus
They will match 50% upto 6% of his contribution.
If he puts 2% - > 1%
3% - 1.5%
4% -> 2%
6% -> 3%
nothing after that will be matched
7%->3%
If he puts 2% - > 1%
3% - 1.5%
4% -> 2%
6% -> 3%
nothing after that will be matched
7%->3%
Posted on 4/1/25 at 9:11 pm to glorymanutdtiger
quote:This
They will match 50% upto 6% of his contribution.
If he puts 2% - > 1%
3% - 1.5%
4% -> 2%
6% -> 3%
nothing after that will be matched
7%->3%
Posted on 4/1/25 at 9:58 pm to Breesus
quote:
Here’s a real world example: If you work 8 hours a day making 14.58 an hour you will earn $116.67 a day.
And you want to max your 401K match you would put in 6% of that 116.67 per day
which is $7 per day into your 401K and your company would match 50% of that $7 that you contribute
which means they give you about $3.50
Posted on 4/2/25 at 3:09 am to HarveyBanger
If he makes 100K, the most he can receive from the employer matching is $3K. That's if he contribute $6K.
He can do a max contribution of 23.5K and still only get $3K from employer's matching.
He can do a max contribution of 23.5K and still only get $3K from employer's matching.
Posted on 4/2/25 at 6:09 am to tigger4ever
That’s a pretty common contribution. Usually comes with 3-5 years of service to be vested in the company’s contributions.
Posted on 4/2/25 at 7:58 am to tigger4ever
Lets use $ numbers for someone making $100k/yr.
If that person puts in $6k (6%) in their 401k, the company will then add $3k to the 401k as a match for an annual total of $9k total contributions to the 401k.
If the person puts in anything over $6k, there is no more matching contribution from the company.
If that person puts in $6k (6%) in their 401k, the company will then add $3k to the 401k as a match for an annual total of $9k total contributions to the 401k.
If the person puts in anything over $6k, there is no more matching contribution from the company.
This post was edited on 4/2/25 at 7:59 am
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