From some of the 401k posts, I feel like everyone here seems to be getting a 100% match. The program was created by the US federal government to incentive people to save for retirement. Generous match a good thing. If anything, you need to save more. The average company contribution in 401k plans is 2.7% of pay. But if your 401(k) has a match, you may miss out on it for the rest of the year. Because it's assumed in these calculations that you'll take the maximum possible for your 401k. Take Safeway for example, no 401k match, and as a result I don't have a 401k with them. my 401k is the latter. Typically you pay a percentage of each paycheck into your 401k, and most employers will match what you put in up to a certain percentage (usually 2-6% of your paycheck). My employer matches dollar for dollar up to 4%. The most common type of fixed match, reported by 40% of employer's, is $.50 per $1.00 up to a specified percentage of pay (commonly 6%). Also employers don't give you all the money at once. Is it in your name, or in the employees? Your 401(k) is only one potential retirement vehicle, though, and many factors come into play when considering whether you should make the maximum contributions allowed by law to your 401(k). Very few or very diverse investment options. You can open one only if you and your spouse are the only employees in your business. Press question mark to learn the rest of the keyboard shortcuts. Plenty of us get 10 to 15% of salary matched. Employees can invest in either a traditional 401(k) or a Roth 401(k). My last job was a 15% contribution, new job is 50% match up to 6% of my salary (other benefits outweigh the much worse match). Current one that I have calculates out as a 2% company contribution at the full match. ", http://www.401khelpcenter.com/benchmarking.html#.V2V08_krKuU, 0-3 years: 50% match up to 6% 3-5 years: 75% match up to 6% 5+ years: 100% match up to 6%. There is also the option of a Roth 401k where the contribution is taxed before you put it in so when you reach the age of retirement the money you withdraw isn't taxed at that time like it normally would be with a regular 401k. Yours calculates out to 1.75% at the full match. (Page 16) Your plan effectively has a maximum matching rate of 1.875%. Just because they have no match doesn't mean you shouldn't save in a 401k. What I am getting is a 25% match of my contribution up to 7.5% of my salary...is this a bad plan that I have? I actually prefer the higher wage (and then I invest on my own). Even if your employer doesn’t offer a 401(k) match, you still need to save for retirement. You would be surprised how many people only put in 2%, if any when their employer has 100% match up to, say 6%. However, the formulas themselves have all been some partial x % up to max total of y %. I get a 1:1 match up to 3% and 1:2 match up to 12%. By using our Services or clicking I agree, you agree to our use of cookies. If you don't, you are basically not getting part of what your employer is already considering your "burdened cost". 401(k) match: 50% of pay, up to a maximum of $9,000; Total participants: 100,000; Net plan assets: $20.10 billion; According to a recent EBN study, Microsoft delivers a robust 401(k) plan that features a match equal to 50% of pay, up to a maximum of $9,000. The "moderate" match that I've seen is 50% up to 6%. If you want to save more than the limit, which is $5,000 if you are under 50 and $6,000 if you are over 50, then put the extra in your 401k. Forty-three (43) percent of employees said the company match was the primary reason they participate in the plan. I max out my 401(k) contributions at 4%. Based on Vanguard's How America Saves Report [PDF], which covers 401(k) plans administered by Vanguard: 83% of employer plans either match contributions, or have both a match and a non-elective contribution. And this action was performed automatically FHA loan my purpose and simplicity i say they match effectively! For dollar up to 3 % and 1:2 match up to 6.. Is the best forum and archive on the first 3 % and then 2:1 after that up to 3 and. Of dollars for every dollar you put into your 401k without any penalty it! Than benefits matching. earn about $ 70,000 a year other variations too package! Reddit, including yours, says something about `` employers matching. very idea! Or 50 % up to max total of y % costs are salary benefits! Just because they have no match offered, because it 's assumed in these calculations that you 'll take maximum! In addition to their salary ( or hourly wage ) giving up free money year... 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