Hi all,

First thanks for all the great information/opinions on this board. Its a pleasure to read about the differences between Traditional and Roth IRA's etc. Now to my question:

My employer (a credit union) only matches 50% of up to 6% of my gross income in contributions to my 401k. I've heard of better matches than this, but am not complaining. HOWEVER, they also contribute a percentage (6 1/2% last year) of my gross as a year end bonus. Is this an exceptional benefit? Do many companies do this? Seems pretty stout to me. Too bad I can only choose from about 10 equity funds. :~(

-Eric

My employer (a credit union) only matches 50% of up to 6% of my gross income in contributions to my 401k. I've heard of better matches than this, but am not complaining. HOWEVER, they also contribute a percentage (6 1/2% last year) of my gross as a year end bonus. Is this an exceptional benefit? Do many companies do this? Seems pretty stout to me. Too bad I can only choose from about 10 equity funds.

My employer (a credit union) only matches 50% of up to 6% of my gross income in contributions to my 401k. I've heard of better matches than this, but am not complaining. HOWEVER, they also contribute a percentage (6 1/2% last year) of my gross as a year end bonus. Is this an exceptional benefit? Do many companies do this? Seems pretty stout to me. Too bad I can only choose from about 10 equity funds.

Sounds like a better deal than most, possibly a profit sharing plan? We also have a profit sharing plan but they seem to change it quite often, and it hasn't paid out in 3 years.

50% up to 6% is pretty common. The year end bonus contribution is not. Sounds like you have a good deal. And 10 equity funds is great. That should cover all the major investment categories. More important than having more funds to choose from is what family of funds you have, their long term performance, and the fund expense structure.

My employer (a credit union) only matches 50% of up to 6% of my gross income in contributions to my 401k. I've heard of better matches than this, but am not complaining.

There are better matches, but this is still pretty good. Think of it as getting a 50% return on your money. For example, you put in $100, with their match, its now $150, with no extra work/risk on your part. Hopefully you are only contributing up to the match.

HOWEVER, they also contribute a percentage (6 1/2% last year) of my gross as a year end bonus. Is this an exceptional benefit? Do many companies do this? Seems pretty stout to me. Too bad I can only choose from about 10 equity funds. :~(

Nice extra benefit.

JLC

Thanks for all the quick replies! Yes, it is a profit sharing plan. Credit unions are basically "non-profit" as I understand it, only holding working and expansion capital at the end of the year. The rest goes to employees in the form of this bonus, as well as lower interest rates on loans for members as well as lower fees. I guess 10 equity funds isn't so bad. There is representation of small/medium/large cap funds in both growth and value flavors, as well as a couple foreign funds and a REIT fund. No particular fund family, just a hodgepodge of Janus, Washington Mutual, Liberty, Templeton, Oppenheimer, etc.

Also good to know my 401k match is pretty standard. Thanks Fools!

Happy Turkey Day,

-Eric

Just point that year-end bonus to your Roth account. Do not spend it.

Just point that year-end bonus to your Roth account. Do not spend it.

Ahh, one point I failed to mention. The bonus goes directly into my 401k. Doesn't pass go, no chance to spend it without huge tax penalties. Its staying, don't worry. I'm Foolish aren't I? Wouldn't have it any other way!

-Eric