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Financial Planning / Foolish 401(k)s


Subject:  Re: Figuring in Contributions Date:  6/3/2013  2:18 PM
Author:  VikingErik Number:  25041 of 26116

An employer contribution is the same as your own contribution. It doesn't matter whether or not it came as a slice from your paycheck. It's exactly as if your paycheck were $50 higher and you contributed $150 instead of $100. The $50 is already part of your total compensation from the employer, you just only get it by jumping through a hoop of making your own contribution.

(OK, it's not exactly the same if there is a vesting schedule on employer contributions, in which case you should discount its apparent value by some risk factor that you will not achieve vesting. But that sounds unlikely for you if the account is as old as 2006.)

- Erik
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