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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: dgoldm1287 on January 29, 2015, 12:00:36 PM

Title: Employer Contributions Poll
Post by: dgoldm1287 on January 29, 2015, 12:00:36 PM
Hi All.

I am finally eligible for my company 401 (k) at a small CPA firm in Wyoming (40 employees). The firm provides a 50% match plus an additional 3% of your salary. My prior firm, based in Baltimore, employed 300+ employees and provided a 3% match. Another added benefit is that my salary is higher in Wyoming then it was in Baltimore and there are no state income taxes.

I have elected to maximize my contributions at $18,000. Therefore, my match will be $9,000 plus an additional 3% of salary.

Please fill out the survey and feel free to add any comments regarding your firm size and past matches. I would be especially interested to find out if others had a similar experience between job benefits and salary when moving to a small town (better benefits, salary, etc.).

Best regards,
GoldStache

Title: Re: Employer Contributions Poll
Post by: MetalCap on January 29, 2015, 12:06:07 PM
GS,

Wow that is an awesome match.  I find in my industry (construction) matches are around 3-5%  I was wowed when I heard of an 8% match.  Sounds like you've got the right idea to max out.  One other idea might be to look at adding to a Roth since you have less taxes (no state), especially if you plan on moving to a state with tax.

Congrats again.

MC
Title: Re: Employer Contributions Poll
Post by: divsnowball on January 29, 2015, 12:09:53 PM
There is a large university here that matches up to 9%!!
Title: Re: Employer Contributions Poll
Post by: Scandium on January 29, 2015, 12:10:36 PM
Not sure how to vote. My employer does a flat 10% of my salary, no matter what I contribute. This is the first year I'm maxing out and adding $25K+ to the account every year will be sweet.


edit: engineering/consulting  firm. ~400 people.
Title: Re: Employer Contributions Poll
Post by: sheepstache on January 29, 2015, 12:11:39 PM
I'm never sure how to answer this. I work in a non-profit education institution in a big city. The employer contributes 8% of your salary regardless of whether you contribute anything. Before this I hadn't worked at a place with a 401k.
Title: Re: Employer Contributions Poll
Post by: NinetyFour on January 29, 2015, 12:24:33 PM
I am also unsure how to respond, as my employer contributes 11.4% and I contribute 8%.  These percentages are fixed by my employer.
Title: Re: Employer Contributions Poll
Post by: FoundPeace on January 29, 2015, 12:25:33 PM
My employer matches 6% of my contribution and they add another % based on your age. If you are near normal retirement age I think they contribute an additional 5-6%, but for me they add an additional 3%.
Title: Re: Employer Contributions Poll
Post by: Gone Fishing on January 29, 2015, 12:34:50 PM
I think there is some confusion with the poll question. My employer matches 100% of my contribution up to 6% of my salary.
Title: Re: Employer Contributions Poll
Post by: Scandium on January 29, 2015, 12:46:44 PM
I think there is some confusion with the poll question. My employer matches 100% of my contribution up to 6% of my salary.

yeah. Are the percentages of my salary, or percentage match of my contribution?
Title: Re: Employer Contributions Poll
Post by: I'm a red panda on January 29, 2015, 12:50:30 PM
I can't answer the poll either. We don't have a match, we have a mandated contribution, participation is required. Employer puts in 13% and employee puts in 2%. 
Title: Re: Employer Contributions Poll
Post by: JLee on January 29, 2015, 12:55:07 PM
Wow, a lot of you guys have a large contribution.

I get 50% of my contribution with a 6% limit, so effectively 3% of my salary.
Title: Re: Employer Contributions Poll
Post by: boarder42 on January 29, 2015, 01:14:12 PM
Hi All.

I am finally eligible for my company 401 (k) at a small CPA firm in Wyoming (40 employees). The firm provides a 50% match plus an additional 3% of your salary. My prior firm, based in Baltimore, employed 300+ employees and provided a 3% match. Another added benefit is that my salary is higher in Wyoming then it was in Baltimore and there are no state income taxes.

I have elected to maximize my contributions at $18,000. Therefore, my match will be $9,000 plus an additional 3% of salary.

Please fill out the survey and feel free to add any comments regarding your firm size and past matches. I would be especially interested to find out if others had a similar experience between job benefits and salary when moving to a small town (better benefits, salary, etc.).

Best regards,
GoldStache

who voted on the 51% match.  if its you i dont think we are comparing apples to apples as you get a 9k match plus 3% of your salary so probably around 13-16% would be your match in terms of how this is usually calculated. 
Title: Re: Employer Contributions Poll
Post by: dgoldm1287 on January 29, 2015, 01:20:55 PM
I hadn't voted at that time. I edited the poll to eliminate confusion. The poll was intended for the employer match of your contribution (excluding profit sharing, employer contribution based on salary, etc.).

I hope this helps to clarify.
Title: Re: Employer Contributions Poll
Post by: aspiringnomad on January 29, 2015, 01:32:09 PM
I hadn't voted at that time. I edited the poll to eliminate confusion. The poll was intended for the employer match of your contribution (excluding profit sharing, employer contribution based on salary, etc.).

I hope this helps to clarify.

Clear as mud.
Title: Re: Employer Contributions Poll
Post by: nanu on January 29, 2015, 01:37:37 PM
Mine (or future one, after I graduate) does 100% matching up to $3k OR 50% matching, whichever is higher.
So if I put in $18k (which I plan to), employer puts in $9k.
Title: Re: Employer Contributions Poll
Post by: Gone Fishing on January 29, 2015, 01:45:46 PM
I think there is some confusion with the poll question. My employer matches 100% of my contribution up to 6% of my salary.

But since I am contributing 35% of my salary at the moment, my employer is only matching 17% of my contribution, but once I max out my portion, they will continue contributing at a 6% rate (of my salary)on a 0% percent contribution so...what percentage is that?
Title: Re: Employer Contributions Poll
Post by: ZiziPB on January 29, 2015, 01:49:31 PM
I have no idea how to answer the poll but my employer contributes 2% of my salary (irrespective of employee contributions) plus matches 100% up to 6% of my salary. So a total employer contribution is 8%.  I contribute another 12% (by choice) so a total of 20% goes into my 401k ;-)
Title: Re: Employer Contributions Poll
Post by: Philociraptor on January 29, 2015, 01:53:10 PM
Poll still doesn't make sense. Employer matches 100% up to 6% of salary. I'm currently contributing 25% of salary to 401(k). So They match 6%/25% = 17%?
Title: Re: Employer Contributions Poll
Post by: JLee on January 29, 2015, 03:34:33 PM
Poll still doesn't make sense. Employer matches 100% up to 6% of salary. I'm currently contributing 25% of salary to 401(k). So They match 6%/25% = 17%?

If your employer matches 100% up to 6% of salary, I would say that's a 6% match.
Title: Re: Employer Contributions Poll
Post by: Philociraptor on January 29, 2015, 03:36:05 PM
Poll still doesn't make sense. Employer matches 100% up to 6% of salary. I'm currently contributing 25% of salary to 401(k). So They match 6%/25% = 17%?

If your employer matches 100% up to 6% of salary, I would say that's a 6% match.
I would too, but the poll phrasing doesn't match up with that.
Title: Re: Employer Contributions Poll
Post by: JLee on January 29, 2015, 03:38:50 PM
Poll still doesn't make sense. Employer matches 100% up to 6% of salary. I'm currently contributing 25% of salary to 401(k). So They match 6%/25% = 17%?

If your employer matches 100% up to 6% of salary, I would say that's a 6% match.
I would too, but the poll phrasing doesn't match up with that.

Hah, yeah. I just re-read it.
Title: Re: Employer Contributions Poll
Post by: rampagefc on January 29, 2015, 03:57:59 PM
My employer contributes 3% regardless of my contributions, and then up to an additional 1-3% profit sharing (after 10 years service this increases to 4%). So max would be 6-7% regardless of my contributions. Minimum would be 4%.

Looks like some people in here have some awesome retirement matching! I'm envious.