Posted: 9/10/2016 7:22:55 AM EDT
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Sorry if this is a stupid question. I've never had an employer with a matching plan and I don't want to make any assumptions.
I have an offer letter sitting on my (home)desk from a competitor and their 401k plan states they'll match 20% of the first 8%. Is this just a slick way of saying 1.6%? Please educate me. Thanks. |
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Quoted:
I think your assessment is correct. Some companies are cheap. ETA: I shouldn't say the company is cheap. At least they offer something. I'm just used to seeing a much larger match. My previous company gave 9% and the company I'm with now gives 6%. It wouldn't be terrible, because their salary is fairly high for my industry/position. |
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Quoted: Sorry if this is a stupid question. I've never had an employer with a matching plan and I don't want to make any assumptions. I have an offer letter sitting on my (home)desk from a competitor and their 401k plan states they'll match 20% of the first 8%. Is this just a slick way of saying 1.6%? Please educate me. Thanks. that does suck. |
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Ok, so if I put in 6% I'd get 1.2% matched, etc . . Quoted:
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In short yes, but in order to get it, you have to invest 8%. V Ok, so if I put in 6% I'd get 1.2% matched, etc . . Lilley yes but it's best to confirm. One place was an all or nothing. V |
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Quoted: Max contribution this year is $18,500. Quoted: Quoted: One of you math wizzes run the numbers on this and assume $24,000 contribution: 100% match for the first 6%. 25% match for 100% . By the way, is it 6% of your salary or 6% of the maximum allowed contribution? Max contribution this year is $18,500. If I remember correctly, the employer match does not count against that. If so, the above rates at the max comes out to $5457.50 matched. |
| It's pretty low compared to what I've seen, but free money is free money, and it shouldn't be left on the table. The other thing to consider is what are, if any, the management fees associated with it? That isn't something you want picking away at your money. It's usually expressed as $X per $1000 in your account. |
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Quoted:
Sorry if this is a stupid question. I've never had an employer with a matching plan and I don't want to make any assumptions. I have an offer letter sitting on my (home)desk from a competitor and their 401k plan states they'll match 20% of the first 8%. Is this just a slick way of saying 1.6%? Please educate me. Thanks. Yes but only if you put in 8%. I'd rather them match 100% of the first 1.6% |
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Quoted:
Sorry if this is a stupid question. I've never had an employer with a matching plan and I don't want to make any assumptions. I have an offer letter sitting on my (home)desk from a competitor and their 401k plan states they'll match 20% of the first 8%. Is this just a slick way of saying 1.6%? Please educate me. Thanks. For 401k, my company does 100% of first 4% and 50% of next 2%, so that means I give 6, they give 5. But they also have a retirement plan that operates independently of the 401k with its own contributions from the company. But to OP, you should contribute to the amount that they match to. You should be saving anyway, and if they're going to give you 20% for some amount, you should take them up on every penny. |
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Quoted:
Sorry if this is a stupid question. I've never had an employer with a matching plan and I don't want to make any assumptions. I have an offer letter sitting on my (home)desk from a competitor and their 401k plan states they'll match 20% of the first 8%. Is this just a slick way of saying 1.6%? Please educate me. Thanks. Never regretted participating in 401k's with employer match. Dooooeet. |
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Are you SURE it isn't company match up to 8% contribution, and allowing you to contribute up to 20%? Their word for word is, "20% of the first 8%". Thanks for all the replies, guys. FWIW, I've never had a hard time saving, and I've never had a company match anything on my 401k (yet), so this is new to me. I intend to take advantage of every penny they will put up. I already put away 6+% of my gross salary, outside of a 401k. My 401k contributions on top of that have been small, but only because there was no matching (incentive) and I do fine with my own savings. If I go with this offer I would adjust to be sure I'm maxing out their contribution. Thanks again. |
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Their word for word is, "20% of the first 8%". Thanks for all the replies, guys. FWIW, I've never had a hard time saving, and I've never had a company match anything on my 401k (yet), so this is new to me. I intend to take advantage of every penny they will put up. I already put away 6+% of my gross salary, outside of a 401k. My 401k contributions on top of that have been small, but only because there was no matching (incentive) and I do fine with my own savings. If I go with this offer I would adjust to be sure I'm maxing out their contribution. Thanks again. Quoted:
Quoted:
Are you SURE it isn't company match up to 8% contribution, and allowing you to contribute up to 20%? Their word for word is, "20% of the first 8%". Thanks for all the replies, guys. FWIW, I've never had a hard time saving, and I've never had a company match anything on my 401k (yet), so this is new to me. I intend to take advantage of every penny they will put up. I already put away 6+% of my gross salary, outside of a 401k. My 401k contributions on top of that have been small, but only because there was no matching (incentive) and I do fine with my own savings. If I go with this offer I would adjust to be sure I'm maxing out their contribution. Thanks again. Seems like a 'highly compensated employee' type of situation to me, since it's only 20% on the first eight. Care to divulge the industry and round about pay? What position? Highly paid salary position I'm assuming. |
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Quoted:
Sorry if this is a stupid question. I've never had an employer with a matching plan and I don't want to make any assumptions. I have an offer letter sitting on my (home)desk from a competitor and their 401k plan states they'll match 20% of the first 8%. Is this just a slick way of saying 1.6%? Please educate me. Thanks. sounds like the new plan sucks. |