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Posted: 2/20/2006 6:37:42 PM EDT

Currently with a firm for over 7 years. Fully vested in a 401-K, contributing 6% and they match 50% of this (so I get 3% more from the free and clear.) Very simple and easy to understand.

Well I might be changing jobs here in the next few months. Just got the HR packet from the other firm and need some laymens deciphering of it

"The firm will make a fully vested matching contribution equal to 100% of your salary deferred up to 3% of your compensation plus 50% of your salary deferred between 3 and 5% of your compensation after one-year of service."

English?
Link Posted: 2/20/2006 6:40:07 PM EDT


"The firm will make a fully vested matching contribution equal to 100% of your salary deferred up to 3% of your compensation plus 50% of your salary deferred between 3 and 5% of your compensation after one-year of service."

English?



They will give you dollar for dollar on up to 3% of your salary, then 50 cents on the dollar for an additional 2% of your salary.

So basically, if you put in 5%, they will match you 4% of your salary. Nothing more. Still beats my crappy ass 401k.
Link Posted: 2/20/2006 6:42:29 PM EDT

Originally Posted By MisterGreens:


"The firm will make a fully vested matching contribution equal to 100% of your salary deferred up to 3% of your compensation plus 50% of your salary deferred between 3 and 5% of your compensation after one-year of service."

English?



They will give you dollar for dollar on up to 3% of your salary, then 50 cents on the dollar for an additional 2% of your salary.

So basically, if you put in 5%, they will match you 4% of your salary. Nothing more. Still beats my crappy ass 401k.



that's pretty much what i got from it.
Link Posted: 2/20/2006 6:43:37 PM EDT

Originally Posted By MisterGreens:


"The firm will make a fully vested matching contribution equal to 100% of your salary deferred up to 3% of your compensation plus 50% of your salary deferred between 3 and 5% of your compensation after one-year of service."

English?



They will give you dollar for dollar on up to 3% of your salary, then 50 cents on the dollar for an additional 2% of your salary.

So basically, if you put in 5%, they will match you 4% of your salary. Nothing more. Still beats my crappy ass 401k.



Remember the one year of service requirement. Review the summary plan description to see what they define as "one-year of service" as this can mean different things in different plans.
Link Posted: 2/20/2006 6:44:30 PM EDT
[Last Edit: 2/20/2006 6:47:52 PM EDT by alaman]
That sounds like a safe-harbor 401(k) plan so the matching contribution might be 100% vested at all times. That is one of the safe harbor formulas.

%You contribute % they contribute
1 1
2 2
3 3
4 3.5
5 4
6 or more 4

The one year of service means you must work one year during which you work 1000 hours. Then the next question is what is the date you enter after meeting the one year requirement. Also, the match the 1st year will probably only be on your salary from date of participation
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