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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 9:00 am to Lee Chatelain
Not good, not bad. I'd say average
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 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 11:29 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 1:34 pm to Lee Chatelain
Considering my company doesn't do any match I'd say that is good.
Maxing out my 401k on my own and also traditional IRA so I guess i'm good. Place is awesome to work for they pay 100% of our health insurance, cell phone, dental, vision so I guess it all averages out.
Maxing out my 401k on my own and also traditional IRA so I guess i'm good. Place is awesome to work for they pay 100% of our health insurance, cell phone, dental, vision so I guess it all averages out.
Posted on 1/12/15 at 2:25 pm to Lee Chatelain
My company matches 4% if you contribute 5%.
In addition, there is profit sharing that goes into it, but obviously the percent changes from year to year.
In addition, there is profit sharing that goes into it, but obviously the percent changes from year to year.
Posted on 1/13/15 at 12:49 pm to Lee Chatelain
bout middle of the road...I think if you can get a 8% match then thats pretty good.
Regardless max that match out at the very least.
Regardless max that match out at the very least.
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