Poll: 401K Match

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.

What does your employer match?

I have no employer-sponsored defined contribution retirement plan
8
3%
I have no employer-sponsored defined contribution retirement plan
8
3%
My employer's program has no match (military TSP for example)
39
14%
1:1 match of first 1-6% of my salary that I contribute
121
44%
1:1 match of first $1-$10K I contribute
5
2%
1:1 match of all the money I contribute
6
2%
1:1 match of all the money I contribute
6
2%
2:1 match of all the money I contribute
6
2%
My employer gives a defined contribution no matter how much I put in
26
9%
Other (explain below)
51
18%
 
Total votes: 276

grberry
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Location: Boston, MA

Post by grberry » Mon Feb 04, 2008 1:44 pm

50% match. Guaranteed to match 50% of my first 2%, possibly as much as 50% of my first 6% (so employer contribution of 1% to 3%). Possibility is based on corporate performance.

But the match is made in March of the following year, and only to employees who were still employed on 1/1 of the following year. Between turnover, non-participation, and low participation, the employer has to accrue 2% of total salary in order to fund a 3% match. The match is also subject to vesting, but vesting based on time with the company, not vesting from the ER contribution date, and I've been here long enough to be fully vested.

MWCA
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Post by MWCA » Mon Feb 04, 2008 3:30 pm

Wow some of you got it nice. My wifes employer will only match a max of 1000 a year.

PatrickS
Posts: 51
Joined: Sat Feb 24, 2007 6:38 pm

Post by PatrickS » Mon Feb 04, 2008 4:49 pm

100% on 1st $1500
50% on next $1500
33% on next $7500
10% on any other contributions, including catchup

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Random Musings
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Location: Pennsylvania

Post by Random Musings » Mon Feb 04, 2008 4:53 pm

3% free

and 50% match on the first 4%.

I would believe there are more 50% matches than 200% matches.

And what is the percentage of people who "work for the man" that don't even have 401K (403b plans) or any savings plan at all?

RM

exeunt
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Post by exeunt » Mon Feb 04, 2008 5:22 pm

100% match for the first 7%. Half vests in a year, the other half vests after another year.

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alec
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Post by alec » Mon Feb 04, 2008 5:28 pm

100% match on the first 6%. After that we get 25% match on anything else up to $1000.

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zhiwiller
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Post by zhiwiller » Tue Feb 05, 2008 10:46 am

There are some complicated schemes here. My employer matches the first 6% of salary contributed times 50% if the company earned 99% or less of target, times 75% if the company earned between 100%-110% of target and 100% if the company earned 110+% of target. There used to be a 25% tier, but they got rid of it. In 2004 and 2005 we were at the 25% tier, but this past year we were at the 100% tier.

madhattrsu
Posts: 1
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Location: Florida

Match

Post by madhattrsu » Wed Feb 06, 2008 1:25 pm

My current employer contributes 1.25% no matter what and then matches $0.50 to my $1 up to 6%. That came out horribly complicated!!

I put in 6% - they put in 4.25%.

Vest in *5* years - poop!



My new employer (start in 2 weeks) matches 1:1 up to 3%, then 0.5:1 for the next 2%

I put in 5% - they put in 4%
Vested day 1.

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foodnerd
Posts: 433
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Location: Northwest Arkansas

Post by foodnerd » Wed Feb 06, 2008 2:22 pm

My employer matches dollar for dollar up to 3% of your salary. Then they match 50 cents for every dollar up to 5%. So at 5%, they match 4% max. Also, for every dollar I purchase in my company's stock, they match 25 cents in my 401K in company stock.

FN

raymjy
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Post by raymjy » Wed Feb 06, 2008 9:38 pm

100% on first 6%. One year to be eligible for company match, vest immediately

Poppinjay
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Re: Poll: 401K Match

Post by Poppinjay » Tue Jun 13, 2017 4:14 pm

100% on first 3%, 50% on next 2%. So if I contribute 5% they do 4%. All funds are immediately vested.
We recently merged with another, larger company and I haven't been able to get the new 401k yet, July 1st is the next entry date. The former company matched .15 on the dollar up to $1000.

lazydavid
Posts: 1887
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Re: Poll: 401K Match

Post by lazydavid » Tue Jun 13, 2017 7:59 pm

50% on the first 8% of contributions. Match vests immediately, but does not begin until the 13th month of employment.

If they'd switch to 100% of the first 4%, their costs stay the same, but my contributions wouldn't get capped at 10% :oops: The "average" employee contributes exactly enough to get the full match.

JWooden10
Posts: 68
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Re: Poll: 401K Match

Post by JWooden10 » Tue Jun 13, 2017 8:31 pm

My employer provides a 50% match up to a 6% employee salary contribution.

guitarguy
Posts: 1766
Joined: Mon Dec 20, 2010 4:10 pm

Re: Poll: 401K Match

Post by guitarguy » Wed Jun 14, 2017 7:58 am

Employer gives 2:1 match on the first 4%. I'm not aware of the $ or % of salary maximum, as I don't believe I'm anywhere near hitting it yet.

Wife gets 50% match on first 6% of contributions.

I'm doing the "raise contributions 1% annually" (at a minimum) approach, and have worked my way to contributing 9%. So that plus the employer match of 8% gives me a pretty good savings rate at 17% total (plus maxing out 2X Roth IRA and 1X HSA and contributing to wife's 401k exactly enough to get the full match).

We feel pretty fortunate with our plans.
Last edited by guitarguy on Wed Jun 14, 2017 8:03 am, edited 1 time in total.

guitarguy
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Re: Poll: 401K Match

Post by guitarguy » Wed Jun 14, 2017 8:01 am

lazydavid wrote:If they'd switch to 100% of the first 4%, their costs stay the same, but my contributions wouldn't get capped at 10%
Could you explain this? Just for my information...I don't exactly see how/why your contribution is capped at 10% or how the match rate influences that.

jasc15
Posts: 383
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Re: Poll: 401K Match

Post by jasc15 » Wed Jun 14, 2017 8:10 am

100% of first 3% of salary.
50% of next 3% of salary.

So effectively a max of 4.5% of salary.

lazydavid
Posts: 1887
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Re: Poll: 401K Match

Post by lazydavid » Wed Jun 14, 2017 8:59 am

guitarguy wrote:
lazydavid wrote:If they'd switch to 100% of the first 4%, their costs stay the same, but my contributions wouldn't get capped at 10%
Could you explain this? Just for my information...I don't exactly see how/why your contribution is capped at 10% or how the match rate influences that.
It isn't capped (yet) this year, but will be next year due to HCE provisions, which require that HCE contributions be capped at no more than 2% higher than the average of all non-HCEs. Since the cap is at 10%, that means the average of all non-HCEs is 8%, enough to get the full match. The net result is that anyone making between $120-180k cannot max out their 401k, while those making more or less than that band can.

One of the ways to institute a safe harbor 401k and avoid HCE limitations is to match 100% on the first 4% of employee contributions. Since the "average" employee is already getting the full match, this would not change the company's costs in any significant manner.

kelvor
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Re: Poll: 401K Match

Post by kelvor » Wed Jun 14, 2017 10:09 am

100% of first 1% of salary.
50% of next 5% of salary.

Employer contributions are vested immediately.

niners9088
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Re: Poll: 401K Match

Post by niners9088 » Wed Jun 14, 2017 10:23 am

50% on my first 8%

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flamesabers
Posts: 1757
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Location: Rochester, MN

Re: Poll: 401K Match

Post by flamesabers » Wed Jun 14, 2017 10:25 am

I don't get a match for the TSP since I'm in the army reserves.

For my civilian 401k, I get a dollar-for-dollar match up to the first $1k and then a $0.50 match for every dollar up to 6% of my gross pay beyond the $1k for the initial part of the match.

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celia
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Re: Poll: 401K Match

Post by celia » Wed Jun 14, 2017 10:30 am

When I was working, one employer I had put about 6% into a 401K whether you contributed anything or not since they didn't have a pension plan.

ecotone
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Location: Skokie, IL

Re: Poll: 401K Match

Post by ecotone » Wed Jun 14, 2017 11:43 am

50% company match on the first 6% of any contribution.

marcopolo
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Re: Poll: 401K Match

Post by marcopolo » Wed Jun 14, 2017 2:02 pm

100% up to 10% of salary, up to statutory max salary ($270,000 in 2017),
So employee can put in $27k, company matches $27k
Once in a while you get shown the light, in the strangest of places if you look at it right.

sjt
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Re: Poll: 401K Match

Post by sjt » Wed Jun 14, 2017 2:06 pm

Did anyone notice that Poppinjay used their first post to bump a 9 year old thread?


Anyway - my employer matches 1:1 up to 6% of salary, but they additionally contribute 3% regardless (since they ended the pension program years back)
"The one who covets is the poorer man, | For he would have that which he never can; | But he who doesn't have and doesn't crave | Is rich, though you may hold him but a knave." - Wife of Bath tale

TheRightKost87
Posts: 282
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Location: Boston, MA

Re: Poll: 401K Match

Post by TheRightKost87 » Wed Jun 14, 2017 2:19 pm

My company just put in a match this year. They match 25% of contributions, up to 5% of the employees salary (that's base salary, excluding bonuses, and in my company our bonuses make up a significant portion of our total comp). The employer contribution is fully vested if you've been at the company 4+ years, otherwise it's only partially vested.

I'm pretty sure they just sat down and figured out how they could technically say they had a match - without actually contributing much money at all.
"The problem with diversification is that it works, whether or not we want it to"

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flamesabers
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Re: Poll: 401K Match

Post by flamesabers » Wed Jun 14, 2017 2:23 pm

sjt wrote:Did anyone notice that Poppinjay used their first post to bump a 9 year old thread?
I did notice this was an older thread, but I think it's still very relevant for today.

22twain
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Re: Poll: 401K Match

Post by 22twain » Wed Jun 14, 2017 3:25 pm

Wow, a 9.5-year necropoll. :shock:

I wonder how the 2008 data would compare to the current data if they were separated. The poll started before the financial crisis.

My employer, from which I'm now retired, gives a fixed-percentage non-matching contribution. It was reduced when they got hit by the effects of the crisis, and has not been restored to its previous level.
Last edited by 22twain on Thu Jun 15, 2017 8:44 am, edited 1 time in total.
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Houe
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Re: Poll: 401K Match

Post by Houe » Wed Jun 14, 2017 4:25 pm

50% of first 6%. However there is also profit sharing that has been very good. Overall last year I contributed 6% and employer contributed approximately 8% (3% match and ~5% profit sharing).

aristotelian
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Re: Poll: 401K Match

Post by aristotelian » Wed Jun 14, 2017 4:29 pm

Cosmo wrote:
EmergDoc wrote:I recently learned a brother-in-law has a 200% match on his 401K. I am curious as to what the match is on most 401Ks. I'm sure some of the choices on this poll will be poor, but I think it might be interesting anyway. Try to fit yourself into a category, if you don't, then pick other and explain below.
With all due respect, any possibility that your brother-in-law is fibbing a little here? This is something that I have never heard of.

Cosmo
I have a 2-to-1 match up to 5% of my income. In effect, my employer contributes 200% of my contribution. If that is what is meant by "200% match", I have one.

ljb1234
Posts: 59
Joined: Wed Aug 05, 2015 5:59 am

Re: Poll: 401K Match

Post by ljb1234 » Wed Jun 14, 2017 4:43 pm

2 to 1 match with a max match of 9%.
Ex:
contribution=1%, match=2%
contribution=2%, match=4%
...
contribution>=5%, match = 9%

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Thrifty Femme
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Re: Poll: 401K Match

Post by Thrifty Femme » Wed Jun 14, 2017 9:12 pm

52% of contributions.

lazydavid
Posts: 1887
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Re: Poll: 401K Match

Post by lazydavid » Thu Jun 15, 2017 7:07 am

Thrifty Femme wrote:52% of contributions.
I think you may have the most bizarre match in existence :)

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Shazb0t
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Re: Poll: 401K Match

Post by Shazb0t » Thu Jun 15, 2017 8:37 am

100% of first 4% per pay period.

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flamesabers
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Location: Rochester, MN

Re: Poll: 401K Match

Post by flamesabers » Thu Jun 15, 2017 8:44 am

lazydavid wrote:
Thrifty Femme wrote:52% of contributions.
I think you may have the most bizarre match in existence :)
I agree. Maybe the employer wanted to be the only one that offers a 52% match of contributions? :wink:

While a match of 52% of contributions may sound like a nice deal, the major downside is it forces you to practically max out your contributions to get the full match. When you have a great 401k plan, this isn't a problem, but when you have a terrible 401k plan....

Jack FFR1846
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Re: Poll: 401K Match

Post by Jack FFR1846 » Thu Jun 15, 2017 8:45 am

This fits squarely in the "other" category at my work.

We are given a 50% match of the first 4% we contribute, but this must be voted on by the board of the company quarterly (and can be reduced or increased based on business). It is vested over 5 years, starting a year from the point of the vote. So my first 50% of 4% times first portion vested, 20% takes place a year and 3 months from when I put the money in. Or 0.4%. It does build as years build.

Our plan is with Fidelity and I'm contributing into the S & P 500 at a 0.045% ER, so that's good.

As small and convoluted as this is (I have friends with simple 8% matching at 100% instantly), it's better than the 0% and high fees from my last job.
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2Birds1Stone
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Re: Poll: 401K Match

Post by 2Birds1Stone » Thu Jun 15, 2017 1:00 pm

50% match of the first 5% I contribute.

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Cosmo
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Re: Poll: 401K Match

Post by Cosmo » Thu Jun 15, 2017 1:21 pm

aristotelian wrote:
Cosmo wrote:
EmergDoc wrote:I recently learned a brother-in-law has a 200% match on his 401K. I am curious as to what the match is on most 401Ks. I'm sure some of the choices on this poll will be poor, but I think it might be interesting anyway. Try to fit yourself into a category, if you don't, then pick other and explain below.
With all due respect, any possibility that your brother-in-law is fibbing a little here? This is something that I have never heard of.

Cosmo
I have a 2-to-1 match up to 5% of my income. In effect, my employer contributes 200% of my contribution. If that is what is meant by "200% match", I have one.
That is not how I initially interpreted the OP 9.5 years and one Great Recession ago but your interpretation makes more sense to me now.

It's about time. What took you so long to respond to my post? :happy

Afty
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Re: Poll: 401K Match

Post by Afty » Thu Jun 15, 2017 1:41 pm

We get 100% match of the first $3k, then the greater of $3k or 50% of your contribution above that. If you max that means a 50% match. Our match vests immediately and is unrelated to salary.

We also do not have to spread contributions across the year to get the full match, and there is no true up either -- you get the full match immediately. A nice feature for people who want to max out early.

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Thrifty Femme
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Re: Poll: 401K Match

Post by Thrifty Femme » Thu Jun 15, 2017 8:41 pm

flamesabers wrote:
lazydavid wrote:
Thrifty Femme wrote:52% of contributions.
I think you may have the most bizarre match in existence :)
I agree. Maybe the employer wanted to be the only one that offers a 52% match of contributions? :wink:

While a match of 52% of contributions may sound like a nice deal, the major downside is it forces you to practically max out your contributions to get the full match. When you have a great 401k plan, this isn't a problem, but when you have a terrible 401k plan....
Haha, my employer is increasing the match 1% per year until 2020 when the match reaches 55%. The match was 50% when I started. It'll be about the only thing I'll miss after I move on to another company. Fortunately the 401k plan is excellent with institutional Vanguard funds :happy

brennok
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Re: Poll: 401K Match

Post by brennok » Thu Jun 15, 2017 11:39 pm

My employer took away the company match. We used to have 4% of our contribution and we also had profit sharing. During the crisis, they took the match and left the profit sharing. Profit sharing has a 5 year vesting.

I keep hoping for the match to return. Of course the majority of the employees don't even contribute and were shocked when they got statements since they hadn't contributed anything.

Of course next on the list is to see if we can replace our 401k plan or at least shop around.

Robconoclast
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Re: Poll: 401K Match

Post by Robconoclast » Fri Jun 16, 2017 12:07 am

We receive a 25% match up to a 6% contribution. Profit sharing up to 7.5% of prior year's gross income. Vested after three years
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gpburdell
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Re: Poll: 401K Match

Post by gpburdell » Fri Jun 16, 2017 2:22 am

-100% match on first 6% of salary contribution.
-Optional employer contribution of 0-4% of salary based on company performance

Over the past years, the optional part has averaged 2% so effectively an 8% match.

texasdiver
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Re: Poll: 401K Match

Post by texasdiver » Fri Jun 16, 2017 9:43 am

Teacher here:

When I moved to this state last year and started a new position I had to elect between:

Plan 2: Traditional Pension plus optional 403(b) with no match
Plan 3: Reduced pension with 403(b)-ish program that contains relatively generous match

Did the math and concluded that for someone starting a new job in the last 10 years of their working life Plan 2 is much superior. Someone starting out at age 25 with 40 years of investing to go might end up better with plan 3. So I went with Plan 2.

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rosylenm
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Re: Poll: 401K Match

Post by rosylenm » Fri Jun 16, 2017 9:51 am

Employer contributes 5.5% to all staff's 403(b)s regardless of staff members' contributions and vests after one year.

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fourwedge
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Re: Poll: 401K Match

Post by fourwedge » Fri Jun 16, 2017 10:46 am

My employer matches 50% up to first 6% you put in...vested over 5 years (20% per year). Lots of Vanguard funds available.
Max out your tax sheltered retirement accounts with inexpensive, well diversified, index funds and you will beat 90% of all investors.

Robinwantsacracker
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Re: Poll: 401K Match

Post by Robinwantsacracker » Fri Jun 16, 2017 10:50 am

Before I began working for my current employer I had never heard of a 2:1 match either. I work for a university healthcare system and they match 200% of my contributions up to their contribution of a maximum of 10% of my salary. So if I put in 5%, my employer contributes 10% of my salary. It really helped me get caught up because I got a late start and didn't graduate until I was 26. I am also extremely grateful for my health insurance - they offer a zero $ deductible, low copay plan for $20/month. I had considered staying home for a while after I had my third child, but I would have missed the benefits even more than my salary.

fishmonger
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Re: Poll: 401K Match

Post by fishmonger » Fri Jun 16, 2017 10:50 am

Employer matches 25% of deferrals up to 6%. So essentially 1.5% of comp.

Really the only downside of working here, love my job otherwise. My previous employer was 5% of comp, which is quite a difference over decades

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Portfolio7
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Re: Poll: 401K Match

Post by Portfolio7 » Fri Jun 16, 2017 10:55 am

2% automatic Contribution plus 100% match on the first 6% of contributions. Net, If I contribute a base 6% I mazimize employer contributions which nets to a 14% total (employers 2% base contribution plus my 6% plus employers 6% matching.)
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zuzimb
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Re: Poll: 401K Match

Post by zuzimb » Fri Jun 16, 2017 11:33 am

I get a 50% match of 6% of my contributions. Vested over 5 years.

Lucky to have a low cost fidelity 401k.

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FelixTheCat
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Re: Poll: 401K Match

Post by FelixTheCat » Fri Jun 16, 2017 11:35 am

No match. There is profit sharing.
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