### Author Topic: Can someone please decipher this? I feel like I flunked math...  (Read 2274 times)

#### Stellar

• Posts: 45
##### Can someone please decipher this? I feel like I flunked math...
« on: October 20, 2014, 08:28:24 AM »
Hello all,

This is what our 401k policy is.  It seems so cryptic.  I found some websites that guide you in understanding but the examples are not worded as below.  It sounds contradictory almost.

Match of 50 cents on the dollar to a max of 6% (max match is 3% provided you defer 6%)

Thank you very much in advance,
St-

#### teen persuasion

• Handlebar Stache
• Posts: 1226
##### Re: Can someone please decipher this? I feel like I flunked math...
« Reply #1 on: October 20, 2014, 08:31:09 AM »
If you put in 6%, they will match 50% of what you put in, that is they will add 3%.  If you put in less that 6 %, they will add 50% of what you put in.  After you top 6%, they stop adding.

#### PloddingInsight

• Bristles
• Posts: 320
##### Re: Can someone please decipher this? I feel like I flunked math...
« Reply #2 on: October 20, 2014, 08:32:40 AM »
If you contribute 6% of your salary, you will receive an additional 3% (of your salary) "match", which is 50% of what you contributed.  If you contribute 4% of your salary, you'll get an additional 2% of your salary as a match.  If you contribute 2%, you'll get 1%.  If you contribute over 6% of your salary, you'll still only receive 3%, since that is where the max comes in.

Disclaimer: I do not run your 401k.

#### GetItRight

• Pencil Stache
• Posts: 627
##### Re: Can someone please decipher this? I feel like I flunked math...
« Reply #3 on: October 20, 2014, 08:33:55 AM »
I think that's an english question not a math question... Sounds like 50% match up to 6% max. So if you contribute:
3% they give 1.5% for 4.5% total
6% they give 3% for 9% total
10% they give 3% for 13% total