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Questions tagged [employer-match]

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2
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2answers
530 views

Can I use my declining to put money into a 401k (for which they would match up to 5% if I did) to negotiate a higher salary?

I do not want to contribute to my 401k, however, my contracting company does offer a match of 5%. Can I use the declining of this 401k to negotiate a 5% higher (or a bit lower) salary? Is the company ...
2
votes
2answers
202 views

Two jobs two 401K both matches up to 6%

I have two jobs, both offer 401k matching up to 6%. Is there any advantage of splitting my 401 K contributions ( $9,250.00 each) between employers to take advantage of the 6% matching or it doesn't ...
3
votes
0answers
32 views

Does employer matching contributions in a TFSA count towards the annual limit?

Does my employer matching my contribution to a TFSA count towards my annual TFSA contribution limit?
9
votes
3answers
396 views

How to intentionally overcontribute to 401(k) to maximize new employer's matching?

I knew that I was going to leave my former company for one of the Bay Area startups. Expecting that I would not have a 401(k) account there, I frontloaded my contributions and maxed out my 401(k) ...
3
votes
1answer
222 views

Can a year-end true-up employer match exceed the 401(k) maximum contribution, in which case the employee would past of their 401(k) contributions?

In some firms, the true-up employer match for year X is received the next year (i.e., year X + 1), but it counts toward the 401(k) contributions for year X. One of the main reasons why the employer ...
0
votes
3answers
330 views

Does a 401(k) year-end true-up employer match received in year X+1 for year X count toward the 401(k) max contributions for year X or year X + 1?

In some firms, the true-up employer match for year X is received the next year (i.e., year X + 1). Does a 401(k) year-end true-up employer match received in year X+1 for year X count toward the 401(k)...
0
votes
1answer
73 views

Is a year-end true-up employer match supposed to be received the next year?

I was browsing a 401(k) account, which has a year-end true-up employer match and is managed by Vanguard. The employee who owns the 401(k) account joined the firm in 2017, and frontloaded their 401(k) ...
2
votes
1answer
1k views

Does 401k on H-1b visa make sense when there is an employer match?

I am on H-1b visa in the U.S. I will stay between 2 and 5 years here. My employer is (almost) matching my 401k contribution. I am wondering if it makes sense for me to participate in the 401k. I have ...
0
votes
2answers
525 views

How does the IRS handle 401k excess contributions with employer match?

My situation is a bit complicated: Worked at company A, maxed out 401k in 2017 Left company A, rolled over 401k to IRA Started at company B. Told company B to not contribute to my 401k in their on ...
14
votes
3answers
3k views

If an employer matches 401k contributions, does each match have its own vesting schedule?

Consider the following example where an employer matches 50% of your 401k contributions, and there is a 5 year vesting schedule on the match. Your contribution Employer match Year 1 ...
4
votes
2answers
451 views

Taking full advantage of 401k match when you don't want it

Suppose you have $100,000 "locked" into a traditional IRA. You work at an employer that will match 50% of your 401k contributions (any amount up to 18K limit). Vesting is immediate. Suppose you ...
1
vote
4answers
244 views

I'm trying to setup my 401k with 5% match from my employer

I am newbie and I need help setting up my 401k. Basically, I just want to avail my employer's maximum match, and 5% is the minimum needed to reach it. But I'm not sure if I am doing it right. Here's ...
38
votes
4answers
7k views

What is the logic behind a 50% of X% 401(k) contribution match?

In the situation where an employer is contributing a match to a 401(k), apparently a common formula is to match 50% of employee contributions up to a percentage of their salary. I have also seen this ...
16
votes
3answers
4k views

401k match for extremely high income earners

What happens if the percentage of you salary your company requires you to contribute to a 401k in order to receive your full match is greater than the 18k 401k limit? For example say you make $1,000,...
3
votes
4answers
140 views

Comparing 401(k) contributions from two different employers

I would like to know - assuming all other things being equal (fund choices, fees, annual returns, etc) given this scenario, which one comes out ahead, and how do you calculate this? Company A ...
0
votes
3answers
252 views

How to maximize 401(k) match between switching jobs

My current and future employer both match 50% of contributions up to 7% of earned income. In effect, I can get 50% of my $18,000 contributions. I have front-loaded my contributions at present ...
0
votes
1answer
195 views

What are pros/cons of having 401K contribution taken out of retro pay?

I am due retro pay for 6 month at my workplace. It is about two thousand. I was asked if I want my 401K contribution taken out of my retro pay. What does that mean for me? Will it be more money ...
3
votes
2answers
194 views

Is a company allowed to give employees an option for a bonus to be paid out as a 401k match or cash? [closed]

Imagine I'm a company with no 401k match. We do offer a sizable cash bonus however. Some employees are interested in instead receiving this bonus as 401k match (they are currently hitting the $18k ...
6
votes
2answers
305 views

Employer reneging on 401k matching

Our employer enforces mandatory withholding in the 401k plan every payday, which appears to be done correctly and timely. As per our benefits contract, the employer is supposed to match our ...
7
votes
2answers
880 views

What happens to the company match for a 401k over-contribution?

Suppose that I change jobs halfway through the year. My first employer matches 50% of 401k contributions. By the time I leave, I've already contributed enough to hit IRS limits: $18,000 in my ...
7
votes
2answers
806 views

Can an employer make a 401k vesting schedule worse?

Say a person works for an employer for 2+ years based on the statement (promise?) that they will be 100% vested in their 401k employer match after 5 years. Is the employer then permitted to change the ...
12
votes
3answers
1k views

Employer offering Roth 401k as well as traditional 401(k), established in career

I am 33 years old and currently enrolled in my employers traditional 401(k) plan where I am putting 4% of my salary pre tax and having a maximum of 4% employer match into my plan. After 6 more months ...
1
vote
2answers
225 views

Shifting income to 401k

I am currently able to contribute the maximum employee contribution of $18,000 to my 401k and receive an employer match of $9,000 for a total contribution of $27,000. However, it is my understanding ...
0
votes
2answers
530 views

Employer RRSP match vs. contribution limits for recent grad with no RRSP room?

I'm just starting my first job ($55k), which includes an employer RRSP match up to 5% of my income. I only have $500 of RRSP deduction limit for this year as I have never worked before. Can I ...
44
votes
2answers
7k views

When is employer 401(k) match not worth it?

I have always read to take full advantage of your employer 401(k) match. But what if the match is lower than most? My employer will match 10% of my contributions, up to the legal contribution limit. ...
1
vote
1answer
1k views

How much will I get from an early withdrawal from a 401k and Roth 401k with employee contributions after taxes and penalties?

I am planning to buy a house and want to maximize my cash available. In my 401k account, I have a distribution like this: (x+x1 gains)+(y+y1 gains)+(z+z1 gains) where x: 401k, y: roth 401k, z: ...
3
votes
5answers
4k views

Are Roth 401(k) after-tax contributions at a disadvantage for maximizing employer match money?

I feel like there is a negative to Roth 401(k)s that I haven't seen mentioned anywhere after doing some major research. Assuming the employer match amount is a percentage of the after-tax amount that ...
3
votes
3answers
4k views

Can I cash out my 401k every year (company match > withdrawal penalty)? [duplicate]

My company offers a 401k 50% match up to 6% of salary, but I'm restricted to picking one of a set of investment portfolios. My thinking is, could I max out the 6% every year, get the full 50% match, ...
1
vote
1answer
348 views

401k contributions explanation

I have a basic question on 401k investment. Below is what my company is matching: XYZCompany will match your contributions, up to 4% of your eligible compensation, to a maximum of $10,600. Now I ...
2
votes
1answer
198 views

Employer Matching Contributions [closed]

I get paid bi-weekly and my pay check is ALWAYS the same dollar amount with the same taxes taken out. My employer does my Matching Contribution on a quarterly basis, every time I get my paycheck that ...
2
votes
1answer
4k views

Do employer matching contributions in an RRSP count towards the contribution room?

My employer gives a matching contribution for my RRSP. So let us say if I contribute $5000, the employer contributes $2000 (free money.) Does this $2000 contributed by my employer also eat up my ...
5
votes
3answers
3k views

Could my employer give me a raise in terms of employer 401k contributions instead of salary?

Personal contributions to a 401(k) are capped at $18,000 per year, but personal + employer contributions are capped at $52,000 per year, and I'm already maxing out my 401k. Assuming I was eligible ...
8
votes
2answers
2k views

Can I contribute to a 401k for employer matching and then immediately withdraw it?

I have some friends who work at a company which offers 50% 401k matching up to some amount, but they don't take advantage of it because they want to use the money for non-retirement purposes. Ignoring ...
3
votes
2answers
724 views

How does “on the next percentage” work (for company matching)?

For example, if I contribute 5%, the company matches that contribution with: 100% on the first 2% 40% on the next 2% 25% on the next 1% How do you calculate the next percentage.. and of what ...
9
votes
1answer
8k views

For a non-resident, Is it worth investing in a 401k?

I'm planning to stay in the U.S. for 3 to 5 years. My company offers a 4% match for 401k contributions. Is it worth investing in a 401k plan with all the fees and penalties? Or is there a better way ...
0
votes
1answer
354 views

Are there limits on frequency of withdrawal from Roth 401K?

I understand that withdrawals from Roth 401K's are allowed up to your contribution without penalty since these are after tax dollars. Is there a limit on the frequency of such withdrawals? Presume ...
2
votes
3answers
513 views

Are employer 401k matching contributions invested prior to vesting?

Do the employer match contributions to a 401k before they are vested go into the investments that are selected for the employee contribution?
6
votes
3answers
332 views

What ways can I contribute closer to the the IRS employee/employer combined 401k contribution limit?

In 2014, the IRS maximum 401(k) contribution for an individual is $17,500 but the combined individual/employer maximum is around $52k. One way to have the combined total higher is to simply increase ...
5
votes
2answers
2k views

Why is the total 401(k) contribution limit (employee + employer) so high?

The 2014 employee contribution limit is $17,500. The 2014 total contribution limit is $52,000. (Provided they're not capped earlier based on low income.) Meaning the IRS has left room for a ~$35,...
10
votes
1answer
993 views

Employer match after tax?

My employer matches 2% of my contributions to my 401k but insists those contributions cannot be pre-tax. Is that correct?
8
votes
1answer
6k views

What happens to the gains or losses made on the non-vested portion of a 401k after you leave your job?

If you leave a company that matched 401k contributions before the vesting schedule is complete, the non-vested money is returned to the employer. I'm curious what happens to the gains/losses on the ...
1
vote
3answers
896 views

Using matching on 401k and then cashing out

I realize that if I "cashed out" on a 401K early, I end up having to pay taxes on the cashed out 401K savings. But, I would have had to pay taxes on that 401K amount if I had not put into savings ...
3
votes
4answers
1k views

Why do employers require you to spread your 401(k) contributions throughout the year to get the maximum match?

I think the title says it all. I can't see any reason employers have to incentivize employees to contribute to their 401(k) evenly throughout the year. Instead couldn't they use a relatively simple ...
9
votes
2answers
1k views

My former employer made a mistake calculating my 401(k) contribution/match; what is my responsibility?

I just got a letter from my former employer stating that they had made an error in their 401(k) deductions in 2013. Briefly, they erroneously included my cell phone allowance as eligible pay for the ...
2
votes
1answer
298 views

When a 401k plan cites a percentage of salary, e.g. for matching, is it pre-tax, or post?

Referring to How 401(k) plans work: What does "pre-tax" really mean? Let's do the math to see the advantage of pre-tax saving. For example, you may decide you want to put $200 into your ...
2
votes
1answer
24k views

Do employer RRSP contributions show up as income on my T4?

When I get my T4, I see a certain amount quoted as my income. My employer gives me matching RRSP, which means if I put 1000 dollars, my employer puts in 500 dollars and then buys me the company stock ...
5
votes
2answers
25k views

Over contribution to 401K between two employers, and maximizing employer match? [duplicate]

I have a situation like this: I worked for an employer this year from January to May and contributed $14,500 to my 401K. There was no matching from this employer. In mid-May time frame, I changed ...
4
votes
1answer
3k views

401k Contributions + Employer Match be greater than Maximum Contribution?

This year, 401k contributions are capped at $17,000 per person. So let's say somebody contributes this amount and is matched maybe 8% by their employer each contribution period. Can the total amount ...
6
votes
3answers
516 views

Should I participate in a 401k if there is no company match?

The 401K program offered by my employer doesn't include a company match. Should I participate in the plan? What are the criteria one should use for estimating the worth of the situation?
16
votes
4answers
2k views

Could excess 401(k) contributions be used to game/maximize matches from different employers?

Suppose I max out my 401(k) really early. This avoids the risk that if I lose the job I would have lost the chance to contribute to it fully. However there is another risk. My company doesn't match. ...