quote:
True story - I had an HR airhead tell me (perfectly honestly, she was just clueless) that the promised 4% match was only 2% because it was applied to a paycheck that was twice monthly, so it was pro-rated

I'll have to check with our plan administrator. Does anyone think it is worth contributing to(as a substitute for some of my pre-tax 401k contribution) if they only match the net amount? I understand it is important to hedge your tax consequences but not sure if it is worth the lesser match. I'm only 23, not a 1%er OT big swinging dick knocking off $250k.

This post was edited on 10/17/12 at 5:58 pm

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Posted by Dead Mike

Cell Block 4

Member since Mar 2010

3400 posts

Posted on 10/17/12 at 7:02 pm to Chris Farley

quote:
Does anyone think it is worth contributing to(as a substitute for some of my pre-tax 401k contribution) if they only match the net amount? I understand it is important to hedge your tax consequences but not sure if it is worth the lesser match. I'm only 23, not a 1%er OT big swinging dick knocking off $250k.

Will you have a higher tax rate now, or at the time of withdrawal?

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Posted by CoolHand

Member since Dec 2011

2084 posts

Posted on 10/17/12 at 11:22 pm to Chris Farley

quote:
I'll have to check with our plan administrator. Does anyone think it is worth contributing to(as a substitute for some of my pre-tax 401k contribution) if they only match the net amount? I understand it is important to hedge your tax consequences but not sure if it is worth the lesser match. I'm only 23, not a 1%er OT big swinging dick knocking off $250k.

I would be tempted to stay with the pre-tax if they only match post tax on the Roth. You're gaining an extra 10% match on the pre-tax 401k. I'd be surprised if they only match post tax on the Roth, though.

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