Poll

Assuming you contribute the amount needed to get your maximum employer match, what percent of your salary is the employer match?

0%
54 (12.7%)
1-2%
25 (5.9%)
3-4%
130 (30.6%)
5-8%
159 (37.4%)
9%+
47 (11.1%)
No 401k
10 (2.4%)

Total Members Voted: 412

Author Topic: What's your 401k match?  (Read 25017 times)

frugally

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What's your 401k match?
« on: February 13, 2014, 06:58:23 PM »
We've got a good discussion going in the general forum about 401ks and started talking about matches.  I'm really curious as to what everyone's 401k match is, as I'm seeing some much higher numbers than I anticipated.  I was originally guessing 3-4% would be the most common value.

If the poll wording is confusing, here is an example:

You contribute 6% to your 401k and your employer contributes 3%.  Your answer would be 3-4%.

beltim

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Re: What's your 401k match?
« Reply #1 on: February 13, 2014, 07:09:40 PM »
My employer doesn't offer a 401k, so I put 0.

frugally

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Re: What's your 401k match?
« Reply #2 on: February 13, 2014, 07:10:21 PM »
Good point, added an option for that.

windawake

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Re: What's your 401k match?
« Reply #3 on: February 13, 2014, 07:44:02 PM »
My employer automatically puts 6% into your 401k and will match up to an additional 2%, so as long as you put in 2%, you get 8%. Fully vested after 3 years. It's a pretty nice deal!

dragoncar

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Re: What's your 401k match?
« Reply #4 on: February 13, 2014, 07:46:29 PM »
Poll police here:  We also need to know about VESTING

beltim

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Re: What's your 401k match?
« Reply #5 on: February 13, 2014, 07:54:02 PM »
Good point, added an option for that.

Can you make the selection changeable?

Russ

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Rural

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Re: What's your 401k match?
« Reply #7 on: February 13, 2014, 09:16:34 PM »
No match, but we have a DB pension, so hard to complain. Also have both 403b and 457.

Davin

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Re: What's your 401k match?
« Reply #8 on: February 13, 2014, 09:26:04 PM »
My employer kicks in a 4% core contribution and will match up to 4% on top of that with no wait for vesting. This is the first job I've had with a 401k option, but it seems like a good deal to me.

FIreDrill

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Re: What's your 401k match?
« Reply #9 on: February 14, 2014, 12:39:23 AM »
My employer does a 100% match up to 10% of your income and every year you have with the company equates to 15-20% vesting increase, 100% vested after 6 years.  Got to love free money :)

more4less

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Re: What's your 401k match?
« Reply #10 on: February 14, 2014, 01:33:50 AM »
I maxed it out last year, which required me contributing close to 1/5th of my paycheck. Employer offers dollar for dollar match for the first 4%, contributions are vested immediately.

michaelrecycles

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Re: What's your 401k match?
« Reply #11 on: February 14, 2014, 02:13:25 AM »
My employer matches up to 4% for employees who contribute at least 6%. Their contributions are vested at 20% after the first year, on a 5 year schedule to vest fully.

Like me, many employees in my branch are contracted to assist other companies on a project basis. Since I don't know how long I will be with the company, I think of the employer contributions the way I do about Social Security - I don't count on it. I'm not sure if my coworkers think the same way. If a project were to end and a subsequent layoff occurred, I would hope they do the decent thing and fully vest the employer contributions as part of a severance.

My previous employer's plan was better. They matched up to 4.5% for employees who contribute at least 6%. However, the employer's contributions were 100% vested immediately.

ketchup

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Re: What's your 401k match?
« Reply #12 on: February 14, 2014, 05:49:47 AM »
Mine does a 50% match on up to 6%, so I put 3-4%.

Dezrah

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Re: What's your 401k match?
« Reply #13 on: February 14, 2014, 07:19:27 AM »
Mine doesn't do it so simply.  They match 100% up to $100, then 10% up to a $500 max regardless of income.  That means if I put in $4100, I get $500.  Also the only contribute in a single lump sum after the calendar year has passed.  I prefer to look at it as an immediate 12% return on my $4100.  At least there's no vesting period.

Edited to add this:

My employer makes up for such a lousy match with a Profit Sharing system.  This is a straight up salary percent into a separate retirement account, no matching required by employee.  I've heard people say that in truly banger years that contribution was in the 20-30% range.  Last year, a poor year in the recession, contributed about 4%.  This account does require a 3 year vesting period.
« Last Edit: February 14, 2014, 10:40:18 AM by Dezrah »

Grindin' Away

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Re: What's your 401k match?
« Reply #14 on: February 14, 2014, 07:38:27 AM »

My employer matches 75% of your contribution up to 8% of your salary.  So to get the max employer contribution, I put in 8%, they put in 6%.  3 year wall for vesting, so you're not vested in any of the employer's match until your 3rd anniversary.

This is on top of an automatic DB Pension Plan that requires no (monetary) contribution from the employee.  Annual pay credit starts at 3%, and then increases based off of years of service and age maxing out at 7.5% down the road.  Annual interest credit is 5%.

dantownehall

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Re: What's your 401k match?
« Reply #15 on: February 14, 2014, 07:51:41 AM »
100% on the first 3% I put in, 50% on the next 3% I put in.

Works out to 4.5%, meaning I can't answer this poll. :)

Cromacster

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Re: What's your 401k match?
« Reply #16 on: February 14, 2014, 07:56:21 AM »
100% on first 3, 50% on next 2, so 4% overall.  100% vested immediately which is nice.

Random Hangers

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Re: What's your 401k match?
« Reply #17 on: February 14, 2014, 08:35:39 AM »
Ours is complicated: they'll match up to 6%, but it depends on how well the company is doing. The low end is a 25% match up to a high end of 125%, which is distributed to us quarterly. It makes sense, I guess, to match company performance to the match, but it makes it hard to figure out how much money they contribute.

Oh, and of course, I came on right after the company's hey-day matches of 125% and have received a 25% to 50% match for most of my 7 years here.

simonsez

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Re: What's your 401k match?
« Reply #18 on: February 14, 2014, 08:44:21 AM »
Fed, 5%

sheepstache

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Re: What's your 401k match?
« Reply #19 on: February 14, 2014, 08:48:49 AM »
There's no matching but they put in the equivalent of 8% of your salary once a year.

mh1361

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Re: What's your 401k match?
« Reply #20 on: February 14, 2014, 08:54:48 AM »
My company matches 50% up to 2.5%. So I'll put in 5% for a 2.5% match. You're eligible for the match 1 year after your full-time start date, and it vests 3 years after your full-time start date. I work at a non-profit for comparisons sake.

Exflyboy

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Re: What's your 401k match?
« Reply #21 on: February 14, 2014, 09:46:08 AM »
Whatever it took to get $23500 ($17.5 plus catchup) out of my gross income and away from Uncle Sam.

Frank

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Re: What's your 401k match?
« Reply #22 on: February 14, 2014, 09:51:28 AM »
My company matches half of up to 5%, so 2.5%. I'll skip the poll since neither options apply.

samburger

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Re: What's your 401k match?
« Reply #23 on: February 14, 2014, 10:02:08 AM »
Mine does 3% if you do 6%. Fully vested after 4 years.

arebelspy

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Re: What's your 401k match?
« Reply #24 on: February 14, 2014, 11:23:14 AM »
Good point, added an option for that.

Can you make the selection changeable?

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Threshkin

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Re: What's your 401k match?
« Reply #25 on: February 14, 2014, 11:45:06 AM »
My company offers a 50% match up to 6% salary contribution so 3%.

The downside is that if you want to max out your 401k most people need to contribute MUCH more than 6% of their salary.  Only people earning about $290K per year can max out at 6%.

These caps on matching funds benefit the highest salary employees the most.  The same people who are less dependent on their 401k for retirement. 

Gotta love the system!

beltim

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Re: What's your 401k match?
« Reply #26 on: February 14, 2014, 11:49:34 AM »
My company offers a 50% match up to 6% salary contribution so 3%.

The downside is that if you want to max out your 401k most people need to contribute MUCH more than 6% of their salary.  Only people earning about $290K per year can max out at 6%.

These caps on matching funds benefit the highest salary employees the most.  The same people who are less dependent on their 401k for retirement. 

Gotta love the system!

Why shouldn't this be the case? What retirement/pension system is NOT based on salary?

Thegoblinchief

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Re: What's your 401k match?
« Reply #27 on: February 14, 2014, 11:51:53 AM »
Me: 6% match, no max.

Wife: 100% match, $500 max annual. Frequent profit-sharing contributions at the end of the year. Nothing last year, but it's been $10K+ over last 5 years.

Threshkin

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Re: What's your 401k match?
« Reply #28 on: February 14, 2014, 02:22:42 PM »
My company offers a 50% match up to 6% salary contribution so 3%.

The downside is that if you want to max out your 401k most people need to contribute MUCH more than 6% of their salary.  Only people earning about $290K per year can max out at 6%.

These caps on matching funds benefit the highest salary employees the most.  The same people who are less dependent on their 401k for retirement. 

Gotta love the system!

Why shouldn't this be the case? What retirement/pension system is NOT based on salary?

The issue is that lower salary employees who put in enough of their salary to max out their 401k get the match capped at 1/2 of 6% of their salary (using my example).  For example someone making $75K only gets a match of $2250 (1/2 of 6%) no matter what.  This discourages the employee from contributing more because they do not get any more match.  On the other hand someone earning $300K can max out their contributions with less than 6% of their salary thus getting a match on the entire amount.

Who is more likely to be dependent on their 401k in retirement.  The worker earning $75K or the one earning $300K?

netskyblue

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Re: What's your 401k match?
« Reply #29 on: February 14, 2014, 02:39:27 PM »
Mine matches up to 3-point-something% (used to be 4, but they lowered it) if you contribute 5%, and you are fully vested after 6 years.  That was actually a BIG consideration in my staying there - at about 5 years, I was seriously SERIOUSLY looking at leaving, but leaving some of that money on the table was a large part of why I didn't.  Then I asked for, and received, a raise, which certainly helped.


beltim

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Re: What's your 401k match?
« Reply #30 on: February 14, 2014, 03:23:47 PM »
My company offers a 50% match up to 6% salary contribution so 3%.

The downside is that if you want to max out your 401k most people need to contribute MUCH more than 6% of their salary.  Only people earning about $290K per year can max out at 6%.

These caps on matching funds benefit the highest salary employees the most.  The same people who are less dependent on their 401k for retirement. 

Gotta love the system!

Why shouldn't this be the case? What retirement/pension system is NOT based on salary?

The issue is that lower salary employees who put in enough of their salary to max out their 401k get the match capped at 1/2 of 6% of their salary (using my example).  For example someone making $75K only gets a match of $2250 (1/2 of 6%) no matter what.  This discourages the employee from contributing more because they do not get any more match.  On the other hand someone earning $300K can max out their contributions with less than 6% of their salary thus getting a match on the entire amount.

Who is more likely to be dependent on their 401k in retirement.  The worker earning $75K or the one earning $300K?

Probably the one earning 300K, since the worker earning 75K will receive a much higher percentage of their salary from Social Security. 

Bateaux

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Re: What's your 401k match?
« Reply #31 on: February 14, 2014, 05:02:43 PM »
We had it made with a defined benefit pension until July of 2012.  I have 20 years in that plan.  if I choose that plan then at 55 I can draw about 35k annully fixed till death.   Now we have a cash balance plan.  The plan is currently worth $225,000 and my company is adding 14 percent annually plus interest.  In addition they match 4 percent into the 401k.

Totals:  2013
My 401k controbution.   Maxed at $17,500
Company match 401k  $4700
Cash balance plan company contribution  $16,900

Nearly 40K a year in company programs each year.  We max Roth IRAs for another $11,000.
  My wife is also contributing about $3,000 and getting a match of about $1,500.

Roughly 55k per year in total tax deferred retirement savings per year.

My cash balance plan will be cut by $165,000 as well as its portion of interest if I take the old pension at 55.  I plan to leave at 50.  I'll have to wait for 5 years but then 35,000 for life.  That is $1,000,000 over 30 years.  However the $165,000 is worth over $1,5000,000 in 35 years at 7 percent.   A nice legacy.


lhamo

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Re: What's your 401k match?
« Reply #32 on: February 15, 2014, 09:54:38 PM »
I work for a non-profit, so we have a 403b plan, but it works pretty much the same as a 401k.  I voted for 9%+, but it works differently than a match.

After 1 year of employment, employer puts in 7.5% of your salary automatically -- you get this whether or not you contribute yourself.  Vests immediately.

After 5 years of employment, employer puts in 10% of your salary automatically.  Vests immediately.  This is where i am at the moment.  I have also been using the Roth 403b option, so I now have nearly $150k in tax free retirement assets in the part of the accounts that are from my contributions. 

After 10 years of employment, employer puts in 12.5% of your salary automatically.  Vests immediately.  I'm probably going to FIRE before I hit this point, but we'll see.

Our plan is with Fidelity, and last year they consolidated our fund choices and reduced fees, so that was a nice change.

nottoolatetostart

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Re: What's your 401k match?
« Reply #33 on: February 17, 2014, 11:18:23 AM »
My employer allows fully vesting within 1 year of service (hit this years ago). Matches generous 5% for my first 5% of my contribution. Adds up to about $6K per year. A few years ago, they also gave an automatic 4% on your salary into a pension. They've since stopped that, but when I leave the company, I can roll that "free" amount into a rollover IRA, so I am pleased as punch.

DH gets 3% of his first 6%. I'm pretty sure he is vested now (he's been there 4 years in June).

So I guess our employers pitch in around $10K per year between us.

Crystal1588

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Re: What's your 401k match?
« Reply #34 on: November 25, 2015, 10:05:37 AM »
This is a super old post, but I still wanted to reply :)

My employer matches 25% up to federal contribution limits.  So, if I put in $18,000, my employer puts in $4,500.  For me, it equals about 11.25% of my salary.

It's a pretty sweet match, but you have to contribute a lot to get a lot out of it.  If you only put in 6% of your salary, you'll only get 1.5% out of it.

FIRE_Buckeye

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Re: What's your 401k match?
« Reply #35 on: November 25, 2015, 10:14:04 AM »
My employer matches 100% up to 6%.
4% vests immediately, the remaining 2% vests after either 2 or 3 years (cant remember which).

Seems to be on par with most bigger companies which I'm happy with given the small size of my firm.

mskyle

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Re: What's your 401k match?
« Reply #36 on: November 25, 2015, 10:27:44 AM »
My employer uses a SimpleIRA, which only allows matching up to 3% (which is how much they match). SimpleIRA also maxes out at $12,500, which is kind of a bummer. I do miss the days of working in higher ed where I generally got something like 8-10% of my salary contributed *plus* a match.

monstermonster

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Re: What's your 401k match?
« Reply #37 on: November 25, 2015, 10:30:18 AM »
My employer uses a SimpleIRA, which only allows matching up to 3% (which is how much they match). SimpleIRA also maxes out at $12,500, which is kind of a bummer. I do miss the days of working in higher ed where I generally got something like 8-10% of my salary contributed *plus* a match.

I can't get my employer to move to a Simple IRA because they can't afford the 3% match and it's required as part of the SimpleIRA :(

Petuniajo

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Re: What's your 401k match?
« Reply #38 on: November 25, 2015, 10:58:47 AM »
I have a 403b, but like others said, it's the same idea as a 401k.

My employer matches 100%, up to 5% of salary.

In addition to the 403b, we have a defined benefit plan (pension) that we are required to contribute to, at 6% of our salary. The state also kicks some in, but I don't remember what it is.

We also have access to a 457, which does not have any matching, but provides another tax-sheltered way to save. In addition to the $18,500 (is that right?) you can contribute to your 403b, you can contribute another $18,500 to your 457, and you do not have to wait until you are a certain age to access it--it is available with no penalties upon separation from my employer.

So overall, not an outstanding match (I'm jealous of those whose employers contribute more!), but we do have a lot of options available for people who are savers.

albireo13

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Re: What's your 401k match?
« Reply #39 on: November 25, 2015, 11:59:55 AM »
My company froze the pension so, now they match with 7% if I contribute 6%.  After 6%, no matching.
I just upped my contribution to 13% so, I net 20% after match.

use2betrix

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Re: What's your 401k match?
« Reply #40 on: November 25, 2015, 12:24:47 PM »
If I put in 6% my company puts in 4%. I do contract work so this job is temporary. It's fully vested as of day 1 which is very, very nice given the circumstances.

andy85

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Re: What's your 401k match?
« Reply #41 on: November 25, 2015, 12:29:59 PM »
4.2% match + an annual lump sum drop in
(it is worded as 70 cents per dollar contributed up to 6% of covered compensation)

The lump sum drop-in is a % of gross salary based on years of service. Starts at 3% and goes up to 7% with 21+years.

Everything is immediately and fully vested.

Just found out they are switching from Mercer to Fidelity in 2016, so i am looking forward for some (hopefully) lower cost funds.

Exflyboy

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Re: What's your 401k match?
« Reply #42 on: November 25, 2015, 12:34:28 PM »
My employer doesn't provide any match but the hourly rate they pay is pretty good for my hobby job which is in theory part time.

I am beyond FI so its debatable whether I should bother to continue to contribute.. But I max it out because it reduces my tax bill. and I can take it back when we are in a lower bracket... And maybe even in a no income tax State!

Big Sleep

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Re: What's your 401k match?
« Reply #43 on: November 25, 2015, 01:01:54 PM »
My employer matches 50% up to the first 6% (3%), which is immediately vested. 

Then if you're 20-29 y.o. you get an additional 3%, 30-39 y.o an add'l 4%, 40-49 y.o. an add'l 5%, 50+ an add'l 6%.  So 6-9% based on your age.  Don't know of many other employers that do it this way, but the add'l money was instituted after a pension freeze.  The add'l money is vested after 3 years of service.

randommadness

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Re: What's your 401k match?
« Reply #44 on: November 25, 2015, 02:14:47 PM »
Fed, 5%

To clarify -

.gov gives us 1% for free
Then they match 1 for 1 for 3%
then they match 1 for 0.5 for another 1%.

So technically they only match 4%, but to get our full "5% match" you need to put in 5%.

Vertical Mode

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Re: What's your 401k match?
« Reply #45 on: November 25, 2015, 02:22:59 PM »
Curious to see what the results of this poll are. My employer does not currently match, but will be implementing one as part of a series of changes for 2016. I understand it will be "modest", but that isn't a number.

turketron

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Re: What's your 401k match?
« Reply #46 on: November 25, 2015, 02:37:12 PM »
No match, but for the time being my company does have a really generous ESPP plan that has netted me more than the match would have even when accounting for taxes. HR says they're considering offering a match once the first round of ESPP is done as our stock has leveled off a bit, but we'll see if it actually happens...

Bracken_Joy

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Re: What's your 401k match?
« Reply #47 on: November 25, 2015, 04:20:50 PM »
33% up to and including the first 6% put in. Vesting 20% per year, for a total of 5 years to being fully vested.

S

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Re: What's your 401k match?
« Reply #48 on: November 25, 2015, 04:32:16 PM »
I am bothered that there is no 8-9% bracket.

justchristine

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Re: What's your 401k match?
« Reply #49 on: November 25, 2015, 04:53:24 PM »
My employer has 2 types of contributions to our 401ks.  One is based on company profits but usually is about 7% if the employee contributes 6%.  The second one is based on years of service and doesn't require employee contribution.  So depending on the employee's situation and company profits, the company contrbutes a total somewhere between 6% and 19%. This year I'll be getting 16%.