NWR-- 401K

so the place i work is going to enroll in a 401K... so i told fh and told him im gonna do it. my boss said he'll match w/e we put into our 401k, so he'll put in exactly what i put in..

fh said that no place can legally match 100% of what the employer put in their 401k. is he right??
i swear ive heard of places matchin 100% of what u put in...

usually companies have a maximum amount they will match

for example, my old company would match up 15% of our salary that we contributed.....so if i made 100k (umm, yeah right i wish...but its easier for the math) and i decided to put in 50k (50%) to my 401k, the company would put it 15k (only 15%)...the rest was on my own

my current employer only matches up to 7%

but that match is 100%...but there is just a maximum cap

i would double-check with your employer to see if there is a cap

either way - definately start putting $ in!!!!! it comes out before taxes too!!

Every place does it differently... mine is matched at 50% of the first 6%... which basically means they match 3%. Why they don't just word it that way I have NO idea...

There are maximums as to what YOU can contribute... for 2009 I THINK it was $16,500 annually. The max TOTAL contriution is $49k or your annual salary (which ever is less) Your employer can contribute the difference between what you contribute and the lesser or your annual salary or $49k...

Most companies, atleast those that I deal with, have a match dollar for dollar up to a certain amount of $.......for example, my previous company matched dollar for dollar the first $500 that an employee matches.........this company that I have been working for now for 3 years matches dollar for dollar for the first $2500 that an employee contributes. Other companies base it on a percentage.......

There are max amounts each year that increase based on the cost of living. This year, the max is $16,500. The amount the employer contributes is not counted towards the $16,500.

I would double check and make sure if that company really does dollar for dollar for EVERY dollar contributed.........usually very unheard of.

Either way, definetly start saving from now. Pretax dollars add up so quickly and you don't realize it since it comes out before you even see your paycheck. I started off contributing just $40 a pay period and now have up-ed it significantly. Just from this job alone, I have accumulated over $25,000 without even knowing it!!! It adds up so quickly and I am telling you, you will be so happy you did. Even if they just contribute $500, it will definetly accumulate over time! Take advantage of the 'free money' the company offers you!!!


Heres an article!

401

thank u ladies!!
i knew i could rely on u!

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Posted by BriansWifey

so the place i work is going to enroll in a 401K... so i told fh and told him im gonna do it. my boss said he'll match w/e we put into our 401k, so he'll put in exactly what i put in..

fh said that no place can legally match 100% of what the employer put in their 401k. is he right??
i swear ive heard of places matchin 100% of what u put in...

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He's wrong. My company matches 100% for the 1st 2K and then 50% after.

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Posted by marinai7

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Posted by BriansWifey

so the place i work is going to enroll in a 401K... so i told fh and told him im gonna do it. my boss said he'll match w/e we put into our 401k, so he'll put in exactly what i put in..

fh said that no place can legally match 100% of what the employer put in their 401k. is he right??
i swear ive heard of places matchin 100% of what u put in...

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He's wrong. My company matches 100% for the 1st 2K and then 50% after.

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I think she meant 100% of everything she puts in.....so if she puts the max in of 16,500, she is asking if her employer matches the total 16,500 as well...........most companies do it where they match 100% up to a certain dollar amount and then a different percentage thereafter.

Everyone above it totally right and you should def try to contribute exactly what your employer matches to maximize your retirement savings!

They can match 100% but usually it is capped at a certain value, or you are not fully vested until a certain time.
My comp for example only matches up to 6% of my salary, however i was fully vested at the start so anything they put in I could take with me if I left.

If you are not fully vested, you can not take all of the money they match.