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I started working at this org at the end of January. I was wondering when I will be eligible for the defined contribution plan, and the 403b match. I am kind of confused, thought maybe someone could shed some light on this for me. I currently am making around 50k and plan on contributing 15% of my paycheck to retirement.

Was wondering how this works if I have been with this organization since January 29th of 2018. When will I be able to start getting the contribution?

Does this mean I will only get 1.5% of whatever amount I put in?

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Based on the image you posted, you are eligible for the defined contribution plan (pension) after 1 year of service, provided you are over 21 and worked at least 1,000 hours in that year.

You are eligible to contribute to the 403(b) after 60 days, but are not eligible for the match until 2 years of service (again provided you worked 500 hours and are over 21).

The vesting period refers to how much of the employer contribution you get to keep should you leave the company early. For example, if you leave the company within three years of your hire date, you will lose any pension amount that has been received.

However, the 401(b) match only gives you a 50% match on the first 3% of your contributions. At a presumably young age (and relatively low tax bracket), you would be better off to put the other 12% into a Roth IRA. You will not be able to deduct the contributions from your taxes now, but the earnings will grow tax-free, which can save you enormous amounts of tax at retirement age. You also have more choices of investments in a IRA versus a 403(b).

You can find many answers on this site regarding what to invest in when you are just starting your retirement investment strategy.

  • When I hit the 1 year mark in January, does that mean it will be 3.5% of my salary by weekly? – MountaindewKing Jul 30 '18 at 19:58
  • That's what it says. – D Stanley Jul 30 '18 at 20:00
  • Would it make more sense for me to contribute to a roth ira until I get to that 2 years and then contribute the 3%? – MountaindewKing Jul 30 '18 at 20:02
  • Sure that would work too since you don't get any match until then. – D Stanley Jul 30 '18 at 20:08
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    "contribute to a roth ira" I think that depends on your current salary. If you're currently in a low tax bracket, pay the tax now and contribute to a Roth. If you make a lot of money and your bracket is high, put it in a traditional/regular IRA. – RonJohn Jul 30 '18 at 20:13

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