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Hi all. New at this.
Anyone care to tell me if my employer matching 4% of my contribution is good, bad or average?
Thanks
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I get 50% on the first 6%, so 3%, you got me beat.

fredinseoul
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Thanks!
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I get 1 to 1 up to 5.5% of salary... I guess that's ok??
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My guess would be that it is above average. My company matches (equal) on first 3%.
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Sounds like I'm getting the short end of the stick. I get 1/2 up to 2% matched (or, in other words, 1%). The company does kick in a profit sharing contribution, but that's only an additional 1% or so. So from my *limited* experience, yes, you've got a good deal.
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thank you all. Maybe i explained this wrong. I can contribute up to 15% of my salary, but the company contributes only up to the first 4%. If I contribute 4% fo my salary, they contribute 4% but from my total contribution. That is 4% from my 4%. Not much. If I give to the plan $100, their contribution is only $4 for a total of $104.

Is this the way it works?
Thanks again.
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Sounds like I'm getting the short end of the stick. I get 1/2 up to 2% matched (or, in other words, 1%).

Then there are those of us who work for a community college who get ZERO match on our 403(b) contributions. (On the other hand, my employer pays both the employer and employee portions of Oregon PERS, which costs the college 14% of our salary: 6% employer portion, 6% employee portion, 2% additional for covering things like disability retirement and retirement distributions based on one of the formulas other than the usual money match formula.)
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thank you all. Maybe i explained this wrong. I can contribute up to 15% of my salary, but the company contributes only up to the first 4%. If I contribute 4% fo my salary, they contribute 4% but from my total contribution. That is 4% from my 4%. Not much. If I give to the plan $100, their contribution is only $4 for a total of $104.


What's 4% of your salary? How does the $100 come in? Is that 4%, 10%, 25% of your salary? Try this equation:

Gross Income x 4% = $How much your employer could pay.




Kim
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Maybe i explained this wrong. I can contribute up to 15% of my salary, but the company contributes only up to the first 4%. If I contribute 4% fo my salary, they contribute 4% but from my total contribution. That is 4% from my 4%. Not much. If I give to the plan $100, their contribution is only $4 for a total of $104.

Is this the way it works?<i/>

Well, i am confused. Are you telling us that is how your plan works or asking us? Never say never, but that sounds like an odd way for your employer to match. Are you saying they contribute 4% of your first 4%? That would be 0.16% of your salary? Traditionally, employers make some match 1%:1%, 0.5%:1%, 0.25%:1%, up to a max, but I have never seen it expressed the way you have written it, now have I seen one so low (other than a 0 match!).

Maybe you should look at your information again?

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hmmm...I think that should have been !
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That might be what they do but I doubt it. 4% match usually means if you contribute 4% of salary they match it with the same amount of money. If you contribute 15% of salary they still match just the first 4%. My company does first 3%. I contribute 12& of salary and they match the first 3%. This means my 401K gets 15% of salary every payday.
Some companies do a 50% match of the first 6% of salary. They are still giving you 3% but only if you sign up for 6% of salary.
Ask to see the plan prospectus which will spell this out and all the other rules about the plan.
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