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Started By
Message
401k with 4% Company match?
Posted on 1/12/15 at 6:08 am
Posted on 1/12/15 at 6:08 am
Is that good? Bad?
Posted on 1/12/15 at 6:12 am to Lee Chatelain
I would say it's not bad. My company matches 3% so there is my perspective.
Posted on 1/12/15 at 7:07 am to Lee Chatelain
Not bad, but definitely not great. I know of a few companies that match 10%.
Posted on 1/12/15 at 7:12 am to ljd4662
$1 for $1? I would say that's average.
My company puts 3% in even if you don't enroll. If you enroll for 3%, they match 6% on top of the "free" 3%.
So I put 5% and get 9% match. I haven't heard of a better one in this area than that.
It's free money, it's never bad
My company puts 3% in even if you don't enroll. If you enroll for 3%, they match 6% on top of the "free" 3%.
So I put 5% and get 9% match. I haven't heard of a better one in this area than that.
quote:
Bad?
It's free money, it's never bad
This post was edited on 1/12/15 at 7:13 am
Posted on 1/12/15 at 9:00 am to Lee Chatelain
Not good, not bad. I'd say average
Posted on 1/12/15 at 9:09 am to TigerTatorTots
I've got 4% plus an additional 3% that is on top of it after 3 years. $1 for $1.
Previously is was $0.50 match on the first 5%....which is definitely sub par.
Previously is was $0.50 match on the first 5%....which is definitely sub par.
This post was edited on 1/12/15 at 9:10 am
Posted on 1/12/15 at 9:31 am to Lee Chatelain
We're 50% of the first 6%, so basically 3% max. I think its "ok" for the size of the company... Certainly not great, but I'm grateful to have something.
Posted on 1/12/15 at 9:33 am to lynxcat
They match $ for $ up to 3% of my yearly earnings
Posted on 1/12/15 at 10:40 am to Lee Chatelain
My company does 75% up to 6%, so I really hope my peers are putting at least 8% in, but I know most aren't
Posted on 1/12/15 at 10:45 am to Lee Chatelain
3 to 5 is standard, in whatever combination.
Federal employees, for example, get 1% gratis, 3% is matched dollar for dollar, and an additional 2% is matched 50 cents on the dollar, so 5 gets you 10.
Some private plans have a similar structure to encourage saving - bottom line, don't leave money on the table - so if 4% buys you 8%, spend the 4% - I would avoid "overcontributing" because in most cases, you want to go ROTH unless you're at your peak income (typically last 5 to 8 working years), and fund it with post-tax dollars.
But, 4 gets you 8 isn't a bad deal at all.
Federal employees, for example, get 1% gratis, 3% is matched dollar for dollar, and an additional 2% is matched 50 cents on the dollar, so 5 gets you 10.
Some private plans have a similar structure to encourage saving - bottom line, don't leave money on the table - so if 4% buys you 8%, spend the 4% - I would avoid "overcontributing" because in most cases, you want to go ROTH unless you're at your peak income (typically last 5 to 8 working years), and fund it with post-tax dollars.
But, 4 gets you 8 isn't a bad deal at all.
This post was edited on 1/12/15 at 11:19 am
Posted on 1/12/15 at 11:00 am to Lee Chatelain
A 3 match is the level that is a safe harbor, which means a plan doesn't have to undergo discrimination testing. A lot of plans use 3 (or 50 cents on the dollar till 6/3).
I would say a 4 would put you probably in the top quarter of companies. Maybe higher. 5 is really good, and it's rare to see more than 5.
I would say a 4 would put you probably in the top quarter of companies. Maybe higher. 5 is really good, and it's rare to see more than 5.
Posted on 1/12/15 at 11:18 am to CQQ
quote:
So I put 5% and get 9% match. I haven't heard of a better one in this area than that.
I put in 5 and get 10
Sorry, had to
Posted on 1/12/15 at 11:19 am to Croacka
quote:
I put in 5 and get 10
NVM - 10 isn't the net, that's the match.
So, 5 buys you 15 (or am I misunderstanding)?
This post was edited on 1/12/15 at 11:22 am
Posted on 1/12/15 at 11:26 am to LSUFanHouston
This thread is making me feel awfully happy about my company's match
Posted on 1/12/15 at 11:29 am to TigerDeBaiter
quote:
Certainly not great, but I'm grateful to have something.
It's nice to hear when people appreciate things.
Posted on 1/12/15 at 11:29 am to Lee Chatelain
Depends on industry and size (and what comparisons you have in market). Overall, 4% free money pretty good. Did not know the "safe harbor" thing above.
However, in O&G, it seems a bit higher. I can get up to 10% at 10 year service, former employer was 7%, and I know another matches 10% from beginning (in addition to pensions).
So compare against your competitors, not general public. Would a 4% match be better at a reduction of 5% of your salary than no match but higher salary?
I think the match encourages you to save. If you WILL do that anyway, it's just part of total compensation.
However, in O&G, it seems a bit higher. I can get up to 10% at 10 year service, former employer was 7%, and I know another matches 10% from beginning (in addition to pensions).
So compare against your competitors, not general public. Would a 4% match be better at a reduction of 5% of your salary than no match but higher salary?
I think the match encourages you to save. If you WILL do that anyway, it's just part of total compensation.
Posted on 1/12/15 at 11:34 am to Croacka
quote:That is awesome
5 buys me 15
Yes
Posted on 1/12/15 at 11:39 am to TigerTatorTots
I'm not fully vested yet though
Posted on 1/12/15 at 11:55 am to LSUtigerME
quote:
Depends on industry and size (and what comparisons you have in market).
very true.
I will say that 100 percent of my clients/contacts who have really high match rates (say 7 percent and above) are in oil and gas.
I'm curious what will happen to those rates if oil stays below 65-70 for an extended period of time.
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