So the 401k/IRA thread got me wondering, what are your companies 401k/RRSP match?
My employer’s match is pretty awful. They match 25% of your first 6% of salary, so max it amounts to 1.5% of your salary per year. On top of that, there is a vesting period and it takes 5 years to be fully vested in the company’s oh so generous match.
To somewhat make up for it they have a plan that they fund 100% and follows the same vesting schedule, but the contributions are a bit higher, about 4% of your annual salary.
I recall seeing some sort of survey where 50% of the first 6% of salary was the most common amount. Your company seems pretty far below the typical mid to large corporation (sorry man). Sounds like that second plan (profit sharing?) is a pretty good deal, though.
Yeah, I know my company’s match is awful. I knew that going in, but it’s pretty standard for a Big 4 firm. Due to the high turnover at the low ranks, they aren’t very generous with the 401k but the 2nd plan makes up for it. It’s not really a profit sharing plan, its just a defined contribution plan that is 100% funded by the company.
I haven’t checked in a while, but I think I get matched dollar for dollar up to 5% of my salary, which increases after 5 and then 8 years. Similar for stock options, match 30% of my contributions up to max of $5000 or something like that. increases to 50% after 5 years, then I think 100% after 8. Something along those lines.
I think my company has one of the best Plans I’ve seen:
There is no matching required; the money they put in your account is regardless of if you contribute anything. I.e., someone who contributes 0% gets the same company contribution as someone who contributes 10%.
Contribution: Depending on your age; they contribute between 4.3% and 10.18%. After 10 years with the company, they DOUBLE the company contribution. So if you’re 40 and been there for 10 years, they’ll contribute 12.44% and you don’t have to contribute anything.
The best plan I’ve seen was with my previous employer, a major consulting company. They contributed 10% each year without you having to contribute a dime. But you didn’t get anything the 1st year and you had to stay 6 years to be fully vested.
One of my clients, their 401k is the best I’ve personally seen. They match $1 for $1 for the first 9% of salary with immediate vesting. This is in addition to their defined benefit plan and rather generous salaries. They don’t call it black gold for nothing!
I forgot to mention in addition to that the employer puts 3% of salary with no conditions (and it vests right away). So in total, if I put 4%, the employer puts 2% (50%) plus 3%. That’s 5% that vests right away.
401k was the same for all of their employees, but I can’t speak to the comparing of benefits of the DB plan.
I had heard from somebody that you have to have the same 401k offerings and matching for all eligible employees otherwise it was considered to be a discriminatory pay practice, but DB plans are allowed to have different levels of benefits for different groups of employees.
100% match for the first 3% contribution and 50% match for the next 2%, so if you put in 6% you can get the max of 4% (stupid weird tiered breakpoints)
I think I read on glassdoor that american funds matches 100% up to 10%, almost as good as what Zesty quoted
Asset managers provide pretty nice benefits. Mine isn’t very straightforward, but it’s basically a fixed 2% plus 8-16% of total comp at the end of the year regardless of the employee’s contribution.