Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [employer-match]

78 questions
52
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2 answers

When is employer 401(k) match not worth it?

I have always read to take full advantage of your employer 401(k) match. But what if the match is lower than most? My employer will match 10% of my contributions, up to the legal contribution limit. I understand that an immediate 10% return on my…
Wesley Marshall
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4 answers

What is the logic behind a 50% of X% 401(k) contribution match?

In the situation where an employer is contributing a match to a 401(k), apparently a common formula is to match 50% of employee contributions up to a percentage of their salary. I have also seen this phrased as "50 cents for every dollar". If the…
friggle
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24
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5 answers

401(k) investment after being fired. Do I own it?

A friend was released from their job after 4 years, not vested. I understand 5 years are required to be vested. Are they entitled to the contributions they made to the 401(k)?
Lisa C
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17
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3 answers

401k match for extremely high income earners

What happens if the percentage of you salary your company requires you to contribute to a 401k in order to receive your full match is greater than the 18k 401k limit? For example say you make $1,000,000 a year. Your company matches your…
Robert Corey
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17
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4 answers

Could excess 401(k) contributions be used to game/maximize matches from different employers?

Suppose I max out my 401(k) really early. This avoids the risk that if I lose the job I would have lost the chance to contribute to it fully. However there is another risk. My company doesn't match. Suppose I do lose my job in the middle of the year…
user102008
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3 answers

If an employer matches 401k contributions, does each match have its own vesting schedule?

Consider the following example where an employer matches 50% of your 401k contributions, and there is a 5 year vesting schedule on the match. Your contribution Employer match Year 1 $10K $5K Year 2 …
7529
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13
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3 answers

Employer offering Roth 401k as well as traditional 401(k), established in career

I am 33 years old and currently enrolled in my employers traditional 401(k) plan where I am putting 4% of my salary pre tax and having a maximum of 4% employer match into my plan. After 6 more months of seniority I will be 100% vested and that…
maple_shaft
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13
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2 answers

Employer tax benefits of 401k matching vs salary increase

I was trying to understand why a company would offer 401k matching instead of higher salaries to employees. I read that some states require companies to offer retirement things which makes sense. One answer in this question mentions matching…
roobee
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12
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3 answers

Green Card holder (permanent resident): Should I contribute to my employer-matched 401(k), even if I might leave the U.S. later?

I am a Green Card holder (permanent residence card) and my company offers a matching 401(k). I plan to stay in the U.S. for a long time. However, I can't control the future. If there were a family emergency, I might have to leave the States. The…
Richard Sayakanit
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12
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3 answers

How to intentionally overcontribute to 401(k) to maximize new employer's matching?

I knew that I was going to leave my former company for one of the Bay Area startups. Expecting that I would not have a 401(k) account there, I frontloaded my contributions and maxed out my 401(k) account with my former employer. I'm currently at…
akavalar
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11
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3 answers

Matching but no investing, or investing but no matching?

(This is a simplified version of an earlier question I posted - I want to try to get back to basics so I can understand the principles involved in my decision) Given the following two options: Employer matching 1% of gross pay in an IRA with heavy…
user3474
10
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1 answer

Employer match after tax?

My employer matches 2% of my contributions to my 401k but insists those contributions cannot be pre-tax. Is that correct?
gary palmer
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10
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1 answer

What happens to the gains or losses made on the non-vested portion of a 401k after you leave your job?

If you leave a company that matched 401k contributions before the vesting schedule is complete, the non-vested money is returned to the employer. I'm curious what happens to the gains/losses on the non-vested money. If your contributions have…
drs
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9
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2 answers

Can I contribute to a 401k for employer matching and then immediately withdraw it?

I have some friends who work at a company which offers 50% 401k matching up to some amount, but they don't take advantage of it because they want to use the money for non-retirement purposes. Ignoring the problems with not saving for retirement, it…
Brendan Long
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For a non-resident, Is it worth investing in a 401k?

I'm planning to stay in the U.S. for 3 to 5 years. My company offers a 4% match for 401k contributions. Is it worth investing in a 401k plan with all the fees and penalties? Or is there a better way to save?
balki
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