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Johnzimbo
Johnzimbo
Joined: Sep 29, 2010
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June 8th, 2019 at 8:01:38 PM permalink
Quote: TigerWu

My company matches 20% of whatever you put in. Period. Simple and straight to the point.



So if you put in 5% they only add 1%? That is weak.
TomG
TomG
Joined: Sep 26, 2010
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June 8th, 2019 at 8:12:22 PM permalink
Quote: TigerWu

Quote: Johnzimbo

My company 401k matches 100% up to 4% but if you contribute 6% then they do a discretionary lump sum match up to 2% more, based on annual company performance. Last year they added 0.5% but this year just announced the discretionary match will be 2%. Nice to put in 6% and get it matched 100% :)

Why do so many companies make 401k matches so convoluted?

My company matches 20% of whatever you put in. Period. Simple and straight to the point.



By definition all matching contributions are convoluted. The only possible way it wouldn't be convoluted is if they just paid you whatever money you earned and then you were able to use it however you wanted.
TigerWu
TigerWu
Joined: May 23, 2016
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miplet
June 9th, 2019 at 10:36:00 AM permalink
Quote: Johnzimbo

So if you put in 5% they only add 1%? That is weak.



If I put in $1000 they will add $200.

If I put in the yearly max of $19,000 they add $3,800.

If I was somehow legally able to contribute my entire salary they would add 20% of whatever that was.

Is that weak? This is the only job I've ever had with a 401k plan, so I don't know. 20% one-time return on investment seems like a pretty good deal to me.
MaxPen
MaxPen
Joined: Feb 4, 2015
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June 9th, 2019 at 10:40:05 AM permalink
Quote: TigerWu

If I put in $1000 they will add $200.

If I put in the yearly max of $19,000 they add $3,800.

If I was somehow legally able to contribute my entire salary they would add 20% of whatever that was.

Is that weak? This is the only job I've ever had with a 401k plan, so I don't know. 20% one-time return on investment seems like a pretty good deal to me.



When I was eligible for 401k I had 100% match on up to 5% of salary with no vesting period.
TigerWu
TigerWu
Joined: May 23, 2016
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June 9th, 2019 at 10:43:26 AM permalink
Quote: MaxPen

When I was eligible for 401k I had 100% match on up to 5% of salary with no vesting period.



So, if you were making 50k a year, they would only contribute up to $2,500 total for the year?
MaxPen
MaxPen
Joined: Feb 4, 2015
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June 9th, 2019 at 10:49:40 AM permalink
Quote: TigerWu

So, if you were making 50k a year, they would only contribute up to $2,500 total for the year?



Yes provided I contributed $2500
TigerWu
TigerWu
Joined: May 23, 2016
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June 9th, 2019 at 10:57:13 AM permalink
Quote: MaxPen

Yes provided I contributed $2500



I see.

I guess different systems are better depending on how much you are able to contribute. I would have to contribute $12,500 to get a $2,500 match at my company, but I could also get up to $1,300 more on top of that vs. your company if I was able to contribute up to the yearly maximum.
SOOPOO
SOOPOO
Joined: Aug 8, 2010
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June 9th, 2019 at 10:58:18 AM permalink
It all depends on what you negotiate. We pay our nurses around 13% of their income into a pension plan. That's around $20k a year and that is on top of their income. Google CRNA. Not a bad gig.
billryan
billryan 
Joined: Nov 2, 2009
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June 9th, 2019 at 3:36:01 PM permalink
It's a sweet deal. I used to be amazed how many people simply ignore what is essentially free money, but these days nothing surprises me.
Jimmy2Times
Jimmy2Times
Joined: Nov 28, 2018
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petroglyph
June 10th, 2019 at 8:13:07 AM permalink
I incurred the wrath of an Amish elder. Recently drove to Chicago to catch the Cubs and get my fix of some cheeze-burger, no fries – chips at the Billy Goat. Inspired by the American Pickers and Barnwood Builders TV shows, I drove home via the back roads of Indiana and Ohio to see the lay of the land. Stayed at this little Mom & Pops motel in western Ohio for the night with the goal to get an early start the next day and hit the Jack and the R&R Hall of Fame. Down the road from the motel was a diner, and when I walked up to the door of the diner there was a group of about 12-15 young Amish guys standing around outside the door. I tried to open the door to the diner but it was locked. Sign on the door said it opened at 5 AM and current time was about 6:15 AM. Wanting to blend in with the locals, I said in a combination of olde English, Yoda and Canadian, “be not open the diner this fine day, eh?” One of the Amish guys responded that the owner had just told them that breakfast service would be delayed because there was no electricity due to a power failure. In my normal thick NY accent I said, “Power failure – no electricity – well then, it will be just like eating at home for you guys”. All of the Amish guys broke out into laughter – I started laughing – we were all laughing together – it was kinda cool. Then from behind the group of youngsters I hear some yelling (it sounded like German or Dutch or something). The young Amish guys immediately stopped laughing and all looked directly down at the ground expressionless. The group parted and this old timer with a white beard and huge Popeye forearms walks out from behind the group. Locking eyes with me and he started yelling, “You no good English; you no good English; you no good English”. He barked out some more German/Dutch to the youngsters and like little ducks all in a row, they all followed him to the parking lot to wait for the diner to open in a spot away from me. Fearing that someone was going to toss a hand loomed quilt over my head and administer a trimming to me, I hit the road. I really don’t think the elder was mad about the “no electricity it will be just like eating at home” crack I made, I think what set him off was that the youngins were laughing, and that they were laughing along with me. All the way to the Jack I kept thinking about that old Weird Al Yankovic Amish parody song of Gangsta's Paradise. As soon as I got home I found it on Utube and had to watch it several times (not sure if is OK to post the link so I didn’t). Next time I pass through rural Ohio maybe I can find some Shakers to rile up, some Shakers to rile up.
I 'm gonna go get the papers, get the papers.

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