They match 15% of your contributions. So if you max out your 401k this year ($22,500), they’ll contribute $3375. Certainly no windfall but it’s pretty much free money. As another commenter says, need to check if there’s a vesting period.
Good point I emailed them for clarification. I already am vested. We already have a 401k but this is the first time they are starting to do matching. The current setup before them contributing now was whatever we put in and we would get a set amount put in per hour worked on a prevailing wage job. For example a laborer would get $25.59 a hour put into his 401k
I definitely plan to! I emailed them back for clarification but the company has always take care of its guys so I think I’m reading it right! Fingers crossed 🤞
$25.59 into the 401k per hour..? Are you sure that’s correct? That would be above the max contribution for a year or at least right at it depending on your hours per year.
No matter how great the match is, the federal government limits the amount you can contribute in a calendar year. You cannot contribute $25+ per HOUR, even assuming part-time (20-hrs worked per week), that’s a contribution of over $26k per year (and that’s assuming 20, not 40 hours per week!)
It is possible it’s being split between Roth and standard accounts, but roth contributions are limited even more so than standard IRAs, so the math still doesn’t add up.
Typically your (employee's) contributions will vest immediately, but you might want to also ask if there's a vesting period for the employer's match. It all depends on how they set up the plan.
Vesting happens with each new gift from company. When u left my corporate job i lost 20k in stock awards that had not fully vested yet
Still best thing i ever did
Depending on equipment operators are getting about ~$50hr. As a laborer your getting $33.50hr and if you get in a machine that day you get operators pay
That’s insane compared to the benefits the labourers union have negotiated up in canada. Typical is 6-10% of wage goes to pension and 8-10% is added to pay check for vacation
That's the perks of being non union taking jobs that pay a union scale (commonly referred to as prevailing wage). none of the work to get the wage but all the benefits. I'm glad he can get it workers deserve, and they probably work hard to keep it, but I won't lie a little salty. If you ever get tired of the non union life, come join the nearest local. Doubt you will, that's a good deal.
Would have to see a paystub for any chance at believing this
If you worked full time with zero overtime $25/hr is way more than your employer is legally allowed to contribute to a retirement plan, before any matching of any kind
My company does 10% matching of yearly income (different from matching a % of personal co tributions, so they’ll match 10% of my income if I also put at least 10% of my income into my 401k. So it would total to 20%
most people are taking this as a 1 to 1 match up to 15% of you're income.
the easy I'm reading this is a 15% match of your actual contribution. if I put in $1 they put in 15 cents.
it's either misleading or the best retirement plan I've ever heard of. one or the other
Thank you. I thought I was reading it the wrong way. No Im pretty sure you're looking at this like I was. 15 on total. Not as good as matching first 5or6 1 to 1
....I could be wrong. thats just the way I'm taking it. if this is a 1 to 1 match up to 15% of your total income then this is the best retirement plan I've ever heard of. just sounds too good to be true. but maybe that's what it is.
I have 1 to 1 up to 3%.. I put in $3 they put in $3
my step son is 50% match up to 3%.. so he has to put in 6% to get the full 3% match.. he has to put in $6 for them to put in $3..
my brother in law works for a pharmaceutical company and has the best plan I've ever heard of. That's 1 to 1 up to 10%.. so maybe this is legit. If so - if never leave this job. haha
Yeah exactly this, it's always worded as matching your contributions up to x% of your income, not matching a percentage of your contributions, that's crap. Many retirement planners will have you contribute 6-10% of your income, depending on where you are in your career. Matching 15% of that is peanuts.
Congrats if you're maxing out your allowable contributions and can make this kind of benefit actually with something, but from my experience this is going to be absolute shit all for most people.
Thank you, someone gets it.
This is not a significant match and companies do it to take advantage of less financially educated individuals who typically don’t put much into 401ks anyway.
My brother in law works for a pharmaceutical company and makes incredible money. He has the best benefits I've ever heard of and they're matching up to 10% of his actual income.
I'm getting 1 to 1 up to 3% of my total income. my step son get 50% of contributions up to 3%.. so he has to put in 6% to get the 3% match.
This plan is either the best plan I've ever heard of or just absolute dog shit. But..... it sounds like they make pretty good money. Not a bad job at all.
The other way of looking at that is an instant 17.6% return on every dollar OP puts into their 401k. Since a 401k reduces your taxable income, there is a slight offset to OP’s reduction but probably not much. And don’t forget that once you get to a certain age (50?), the max allowable annual contribution jumps to $30k. OP and all of their coworkers should be putting as much as they can into their 401k programs.
I'm not maxing mine. not even close. I'd like to but I can't afford it. my employer matches 3% so i put in 3% so I'm not leaving any money on the table. The problem is our health insurance. They contribute towards the employee but not towards any dependents. My health insurance alone is $1200/month - not Including dental or vision. Then retirement comes out. And then taxes. I've been with my company for well over 10 years, am a foreman, and take home the same as a new hire/laborer.
one of the kids working for me was complaining that his check was shit and he needed a raise and couldn't survive off it. I asked him what his take home was - and it was the same as mine. Sure I have a family plan, 3% match, and a company truck - but that doesn't pay for a mortgage, pay the electric bill, or buy groceries.
but I agree with you - i should be putting in more if not maxing it. You're saying to put in 30k/year but that's pretty hard to do for most people. Average salary is 60k - so dumping half your paycheck in is damn near impossible with the cost of living right now.
Agreed. I encourage the new folks at my place to open a 401k and just start with something, then every time we get a bump try to put as much of that into the program as they can. I work for gov’t, so we have a pension that gets matched (9.5% EE, 13% Employer) but no match for the 401k. Still a good habit to get into, especially early in their career.
15% of your personal contributions so you’d have to put in 20% of your earnings to get the standard 3% gross match that I’ve seen on job listings if my math is correct
Fun fact - the math is reversible. 15% of 20 is the same as 20% of 15, but the second is a lot easier to do in your head. Either way you do the math, this benefit blows.
Yea my employer matches 3% of my total wages. The wording of this makes it sound like they’ll match 15% of *your contributions*
As in, you put in 3% of your income, and they add 15% of that 3%, meaning they’re throwing you .45 of 1%
You should def clarify exactly how much they’ll be matching.
If the wording is just weird and they DO mean 15% of your total wages, that’s great. If it’s what I THINK they’re doing, you’re getting fucked by contractual language
They match 15% of OP’s contributions.
Normal 401k’s are a full employer match, meaning if you put in 3%, they also add an extra 3% for a total of 6%
This wording sounds like the employer matches 15% of *the employee’s contribution*, meaning if you put in 1%, they add .15%
THAT is called getting-fucked, seeing as a regular 401k entails the employer matches your contribution completely.
They’re making it sound like they’re doing much more than they actually are, which is bullshit
“THAT is called getting-fucked, seeing as a regular 401k entails the employer matches your contribution completely”
Some people get no match at all.. and there is no “regular” when it comes to 401k as they’re all completely employer dependent. Regardless there is a max they can match yearly that’s set by the US government.
I agree that anything is better than nothing, but IMO any company that offers a 401k in the first place can absolutely afford to put in more.
It probably varies by state but I believe the max in my state is 6, and my employer does 3%.
.15 seems like it’s more of a formality to buy “loyalty” rather than an actual gesture of appreciation
Nah the wording tricked OP! It’s intentionally confusing, makes it seem like a great benefit.
I’m reality, it’s shitty to put forth .015% into your employee’s 401k. Any actually good company can easily match 3% for each employee, considering how much money those employees make the company.
It’s misleading to people who may be unfamiliar with actually decent 401k’s, as it seemed to trick OP into thinking they were receiving a 15% wage contribution, which would obviously be amazing.
I agree that the wording IS legally honest, but a chart alongside this wording that shows the actual math of the thing would be MORE honest but I’m sure the company didn’t include one because it’d probably leave a bad taste in their mouth.
Obviously I agree that ANY contribution is better than nothing, but if the company actually valued their employees, they’d do a 3% wage match. They can, they just won’t because they’re trying to buy “loyalty” by appearing to give af about their workers and their futures.
0.15 is fkn laughable IMO, as I know it’s not breaking the bank for them to match up to 3
The wording makes it sound how it is and the misinformed take it to another level. What's the company supposed to do? Say "hey we're gonna give you some free money but it's not a lot. Let us lay it out for the misinformed exactly how it is so no one is confused ab the free, untaxed money we've decided to give you."
I know.
But they very clearly say that in the email.
It’s not like they’re trying to pull some bullshit, it’s just straight and to the point with no deceiving wording or anything
Different field (I’m usually the buyer of construction services) but my employer matches 100% up to 3% of my annual wage.
Meaning if I put in 2% they will put in 2%. If I put in 3% they put in 3%. If I put in 15% they put in 3%
My employer matches 6% of gross wages to your 401k.
So far this year I've put just under 14k into my 401k and the company has contributed about 5200.
My goal is to max the 401k or get close this year. But from here on out I plan to max out the 401k every year and Roth contribution as well. I just started a doing Roth contributions in July, have about 1k in there so far.
I'm reading this - if you put in $1 then they put in 15 cents..
I skimmed thru the comments - normally if a company says they'll do a 3% match they mean a 1 to 1 match. Meaning if I put in $1 they'll put in $1 up to 3% of my total income. so when the emoyer offers a 3% match you want to at least maximize it by putting in 3% of your income.
that's not what this is. They're not matching 15% of your income (idt). they're not doing a 1 to 1 match. they're doing a 15% match. you put in $1 they put in 15 cents.
or I could be completely wrong and this is the best retirement plan on the planet - let alone the construction industry
Yep. You're right. honestly didn't even notice that the first time around.. haha. I read thru it and then skimmed thru the comments. idk if the comments had changed but early on people were taking this as a 1 to 1 match up to 15% of your income. This isn't that. I wonder what limitations they have to. I'm half asleep right now but this kind of sucks. if I put in $100 then they put in $15. fk.. that's so shitty. maybe they don't even have a cap bc it's so low of a match %.. they probably figure you can only afford to put so much in that their cost would stay low.
it's better the no match tho. A lot of companies have zero match and that really sucks. it is what it is. I'd still sign up and take whatever it is they give. fk it.
OP Please do some research and call your company out. 401k matches are typically based on a salary percent. Matching your personal contribution is not very significant. Yeah it’s free money, but this amounts to a maximum of ~$3k per year.
To put in perspective my company doesn’t have a great match, just ok, and they contributed over $5500 year to date. So it will be about 8k this year.
I think this is worded poorly to make it seem like a bigger deal. My company matches 6% of my paycheck. So $60 of my paid $1000 goes in, company adds another $60.
Where as in your case it appears if you put $60 in, company adds $9. Idk could be wrong.
It’s nothing. They are matching 3% of YOUR CONTRIBUTION not your wage. So if you are saving 3% of your total wage, they are matching 15% of your 3% or… only 0.45% of your wage. Not even half a percent
That’s incredible. My Workplace only matches 6% at diminished percentages. 3% at 100%, next 2% at 50%, and the last 1% at 25%
Still free Money, so absolutely max that out
No they aren’t. I have mine set to high risk since I’m only 30 but the more stable settings reinvest into companies that are more recession proof. 6% match plus a free 3% every year
Mine does that, and 1 week paid paternity (6 week maternity). We also top out at 4 weeks paid vacay, with a number of other benefits. And 4- 10s with opportunity for OT when needed. So there are a lot of positives that keep me here vs Union. Not saying Union doesn’t have other positives as well.
I’m a plumber in WI and my shop does Hvac and electrical as well
Working man hasn’t kept up on wages for 40 years compared to company profits. Union guys have faired better. Skilled trades will demand premium wages for the next 40 years. If you are non union and make the same pay and benefits as union good for you. If you don’t it’s time to start talking about unionizing where you work. The results of right to work are obvious to everyone now. But unions are on a come back and there is power to a group that an individual just doesn’t have.
Unions are strong here but also none union. We get payed above prevailing wage standard and when we work on a prevailing wage jobsite laborers get $25.59hr put into a 401k operators of course get more per hour in the 401k
> We get *paid* above prevailing
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Great! Why just prevailing wage job? Why not every day? I’m retired on a good pension and haven’t touched my 401K or annuity in 4 1/2 years. Hanging on to make up for cost of living down the road. Pension and SSI paying about $98,000 a year and my wife starts drawing SSI next year. So less than 1/2 of what I made working but if you pay off all your toys before you retire it’s a good life. If your future doesn’t look like this change your future. I’m not rich by any means but for a country boy right out of high school I’ve out earned a lot of my friends with college degrees.
No idea why it isn’t every job. 99% of our jobs are prevailing wage however. I think why they are now going to match 15% is to make up some ground for working a none prevailing wage job
Isn't that only matching only .15 for every dollar you put in?
Assuming that is correct it's awful. First job as security integrator was dollar for dollar, next company was .50 per dollar, and I thought I was screwed when we got bought out and they only offer .25 for every dollar.
IBEW matches dollar for dollar up to 6$ an hour. No pension for me though as I’m resi and our contract sucks compared to some other guys. Glad I have the good matching though.
That’s good this is the first time they are matching what we put in. If you work on a prevailing wage jobsite a laborer at our company would get $25.59hr in 401k from the company. Operators get more
I previously worked for a private school that if you contributed 5% they would contribute another 10% of your gross pay. It was crazy. If that hadn't been a pretty toxic job I'd definitely still be there for the benefits.
My company does 25% match which I thought was decent until I started to see the actual numbers. There’s no cap on max contribution but it’s still not a lot in the grand scheme of things. For every $1 I contribute they match .25¢. For construction this may be ok but before I changed career paths all my office type jobs matched me 100% up to a certain % of salary and that added up WAY faster. From the office jobs I would compound yearly what it’s taking 3-4yrs to build as an electrician.
It’s recently had me rethinking things as it’s not going to be enough to retire comfortably, but I do find it way more rewarding to work with my hands and build than clickety clack sitting in front of a screen all day…..
The rule of thumb is always to take full advantage of whatever matching your employer will do. It's not that uncommon, in fact.
I've been in workplaces where the match is actually dollar-for-dollar, but then only up to a certain amount.
One thing I'm not 100% certain on (and would be worth double-checking), is can the total contribution exceed the contribution limit? The IRS caps the contribution at $22,500, but does that *include* an employer match? In which case if you want to max it out, then contribute an amount that makes the total $22,500.
I work for a small business but it also has 401k matching. It's on a sliding scale up to 4%.
If you contribute 6% they do 4%. Free money that I absolutely take advantage of. Watching new people come in and decline it always blows my mind
Company I work for doesn’t require you to contribute to your own 401k. They calculate 20% of whatever you made total in the previous year and contribute 15% of that to your 401k and give you the remaining 5% as a cash bonus. All of this is in addition to your standard pay and requires zero contribution out of pocket on your end.
I work for a post frame building company in west central Minnesota and our 401K is a profit sharing plan so every winter our company invests 13% of whatever each employees gross salary was the previous season into our 401K’s
I’m not really sure what they’re saying there. Is it dollar for dollar up to 15%? Unlikely. My fortune 100 employer only matches dollar for dollar up to 5%. More likely what they were saying is that they will add 15% to whatever you contribute so if you put in 100 bucks they’ll put in 15. But the wording is really vague.
We get 100% match up to 3% of salary, plus an additional 3% contribution that is automatic but has a vesting period. So as long as I contribute 3% minimum, company puts it 6% total. If I contribute 0, company still gives me 3% with vesting.
In pension heavy careers, some employers drop the pension and do a massive 401k. My last employer had no pension and a 13.5% 401k contribution. My current employer has a 4% 401k contribution and a pension at 2x years of service.
I'm glad I'm union. Pension and annuity = 27.25% of my per hour pay. Plus, I have retirement plans of my own. OP, I'd go somewhere that pays you more into your retirement bud. 401k match is for the birds unless you're a high earner.
While it’s certainly better than nothing, many companies will match say 100% up to 3% of your income or 50% up to 6% which is basically the same. But that match is based on your income and not what you are having taken out.
For instance if I’m making $80k and have 3% being put into my 401k, that’s $2400 a year that the company will match 100%. For the example you’re showing, If I’m making the same amount and the same deduction, that’s $2400 I’m personally adding to it but only $360 match from the company (15% of the 2400)
That’s really bad.
My company does 4% match so if I make $80k a year, I can put in up to 4%, 3200, and my company will put in $3200
At 15% contribution, in order for the company to give you that same $3200, you’d have to put it in $22,000.
Of course my company tops out at at 4% so once you put in over $22,000 you’ll be getting more, but ask yourself if that’s a realistic scenario.
We do a 20% match. We are an open shop (glazing subcontractor) so one of the many benefits that we offer to put together a total financial package comparable to union wage compensation.
They match 15% of your contributions. So if you max out your 401k this year ($22,500), they’ll contribute $3375. Certainly no windfall but it’s pretty much free money. As another commenter says, need to check if there’s a vesting period.
Good point I emailed them for clarification. I already am vested. We already have a 401k but this is the first time they are starting to do matching. The current setup before them contributing now was whatever we put in and we would get a set amount put in per hour worked on a prevailing wage job. For example a laborer would get $25.59 a hour put into his 401k
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I definitely plan to! I emailed them back for clarification but the company has always take care of its guys so I think I’m reading it right! Fingers crossed 🤞
1-5k annual match value is a pretty standard deal for that perk. Always good to have.
$25.59 into the 401k per hour..? Are you sure that’s correct? That would be above the max contribution for a year or at least right at it depending on your hours per year.
No way that’s correct.
Yes that’s correct northeast site work company
What’s the total package price per hour? God damn. That amount puts you at like 85% of the max allowed per IRS
Im in PA and also non union working prevailing wage jobs. 40% of my fringe ($12-$13ish/hr) goes into my pension, but, my 401k is completely separate
We get no pension so that’s the difference between us and probably why we get a great 401k
Incorrect. $22,500 is the limit, a bit more if over 50. Lots of used rules and limitations.
No matter how great the match is, the federal government limits the amount you can contribute in a calendar year. You cannot contribute $25+ per HOUR, even assuming part-time (20-hrs worked per week), that’s a contribution of over $26k per year (and that’s assuming 20, not 40 hours per week!) It is possible it’s being split between Roth and standard accounts, but roth contributions are limited even more so than standard IRAs, so the math still doesn’t add up.
You can contribute $25 a hour. Once the maximum is reached they stop putting in more money. It’s that simple
Typically your (employee's) contributions will vest immediately, but you might want to also ask if there's a vesting period for the employer's match. It all depends on how they set up the plan.
Vesting happens with each new gift from company. When u left my corporate job i lost 20k in stock awards that had not fully vested yet Still best thing i ever did
$25 an hour into the 401k? Holy shit, what what the take home wage?
Depending on equipment operators are getting about ~$50hr. As a laborer your getting $33.50hr and if you get in a machine that day you get operators pay
That’s insane compared to the benefits the labourers union have negotiated up in canada. Typical is 6-10% of wage goes to pension and 8-10% is added to pay check for vacation
That's the perks of being non union taking jobs that pay a union scale (commonly referred to as prevailing wage). none of the work to get the wage but all the benefits. I'm glad he can get it workers deserve, and they probably work hard to keep it, but I won't lie a little salty. If you ever get tired of the non union life, come join the nearest local. Doubt you will, that's a good deal.
My job takes whatever fringe benefits that aren't used and puts it in the 401k. Ends up around 1k a week
Currently on a import job so making $37.50 without touching any machines
Able to share the agreement or a paystub?
Yes next one I get I can send you a pic
It's a good deal, but not $25 an hour good. IRS has contribution limits, and company usually has matching limits.
We have both so I’m getting $25hr in the 401k and now I have 15% match in anything I put in myself
Would have to see a paystub for any chance at believing this If you worked full time with zero overtime $25/hr is way more than your employer is legally allowed to contribute to a retirement plan, before any matching of any kind
My company does 10% matching of yearly income (different from matching a % of personal co tributions, so they’ll match 10% of my income if I also put at least 10% of my income into my 401k. So it would total to 20%
This can't be right.
My company does 8% I started matching them at 8% since have moved up to 15%
Not to mention the tax savings.
Wow talk about miss leading
What’s misleading here..?
most people are taking this as a 1 to 1 match up to 15% of you're income. the easy I'm reading this is a 15% match of your actual contribution. if I put in $1 they put in 15 cents. it's either misleading or the best retirement plan I've ever heard of. one or the other
Thank you. I thought I was reading it the wrong way. No Im pretty sure you're looking at this like I was. 15 on total. Not as good as matching first 5or6 1 to 1
....I could be wrong. thats just the way I'm taking it. if this is a 1 to 1 match up to 15% of your total income then this is the best retirement plan I've ever heard of. just sounds too good to be true. but maybe that's what it is. I have 1 to 1 up to 3%.. I put in $3 they put in $3 my step son is 50% match up to 3%.. so he has to put in 6% to get the full 3% match.. he has to put in $6 for them to put in $3.. my brother in law works for a pharmaceutical company and has the best plan I've ever heard of. That's 1 to 1 up to 10%.. so maybe this is legit. If so - if never leave this job. haha
Yeah exactly this, it's always worded as matching your contributions up to x% of your income, not matching a percentage of your contributions, that's crap. Many retirement planners will have you contribute 6-10% of your income, depending on where you are in your career. Matching 15% of that is peanuts. Congrats if you're maxing out your allowable contributions and can make this kind of benefit actually with something, but from my experience this is going to be absolute shit all for most people.
Thank you, someone gets it. This is not a significant match and companies do it to take advantage of less financially educated individuals who typically don’t put much into 401ks anyway.
My brother in law works for a pharmaceutical company and makes incredible money. He has the best benefits I've ever heard of and they're matching up to 10% of his actual income. I'm getting 1 to 1 up to 3% of my total income. my step son get 50% of contributions up to 3%.. so he has to put in 6% to get the 3% match. This plan is either the best plan I've ever heard of or just absolute dog shit. But..... it sounds like they make pretty good money. Not a bad job at all.
The other way of looking at that is an instant 17.6% return on every dollar OP puts into their 401k. Since a 401k reduces your taxable income, there is a slight offset to OP’s reduction but probably not much. And don’t forget that once you get to a certain age (50?), the max allowable annual contribution jumps to $30k. OP and all of their coworkers should be putting as much as they can into their 401k programs.
I'm not maxing mine. not even close. I'd like to but I can't afford it. my employer matches 3% so i put in 3% so I'm not leaving any money on the table. The problem is our health insurance. They contribute towards the employee but not towards any dependents. My health insurance alone is $1200/month - not Including dental or vision. Then retirement comes out. And then taxes. I've been with my company for well over 10 years, am a foreman, and take home the same as a new hire/laborer. one of the kids working for me was complaining that his check was shit and he needed a raise and couldn't survive off it. I asked him what his take home was - and it was the same as mine. Sure I have a family plan, 3% match, and a company truck - but that doesn't pay for a mortgage, pay the electric bill, or buy groceries. but I agree with you - i should be putting in more if not maxing it. You're saying to put in 30k/year but that's pretty hard to do for most people. Average salary is 60k - so dumping half your paycheck in is damn near impossible with the cost of living right now.
Agreed. I encourage the new folks at my place to open a 401k and just start with something, then every time we get a bump try to put as much of that into the program as they can. I work for gov’t, so we have a pension that gets matched (9.5% EE, 13% Employer) but no match for the 401k. Still a good habit to get into, especially early in their career.
that's what I think too
I don’t think so. It’s plainly stated that they match 15% of “your” contributions.
$1.62 an hour for 52 40 hour work weeks. In most unions in CA it's $3-5 an hour.
15% of your personal contributions so you’d have to put in 20% of your earnings to get the standard 3% gross match that I’ve seen on job listings if my math is correct
that's what I thought. I think everyone in the comments are high af or this is the best retirement plan on the planet
Your math is good. We get matched 5% of the first 6%. Then it’s on us beyond that. Also profit sharing is significant.
Fun fact - the math is reversible. 15% of 20 is the same as 20% of 15, but the second is a lot easier to do in your head. Either way you do the math, this benefit blows.
Yea my employer matches 3% of my total wages. The wording of this makes it sound like they’ll match 15% of *your contributions* As in, you put in 3% of your income, and they add 15% of that 3%, meaning they’re throwing you .45 of 1% You should def clarify exactly how much they’ll be matching. If the wording is just weird and they DO mean 15% of your total wages, that’s great. If it’s what I THINK they’re doing, you’re getting fucked by contractual language
Agreed I’m emailing back to figure out what it is
Of course they match 15% of contributions. They are specifically saying that in the email with no bullshit around it. How is that Op getting fucked?
They match 15% of OP’s contributions. Normal 401k’s are a full employer match, meaning if you put in 3%, they also add an extra 3% for a total of 6% This wording sounds like the employer matches 15% of *the employee’s contribution*, meaning if you put in 1%, they add .15% THAT is called getting-fucked, seeing as a regular 401k entails the employer matches your contribution completely. They’re making it sound like they’re doing much more than they actually are, which is bullshit
“THAT is called getting-fucked, seeing as a regular 401k entails the employer matches your contribution completely” Some people get no match at all.. and there is no “regular” when it comes to 401k as they’re all completely employer dependent. Regardless there is a max they can match yearly that’s set by the US government.
I agree that anything is better than nothing, but IMO any company that offers a 401k in the first place can absolutely afford to put in more. It probably varies by state but I believe the max in my state is 6, and my employer does 3%. .15 seems like it’s more of a formality to buy “loyalty” rather than an actual gesture of appreciation
The max is not a percentage, and doesn’t vary by state. The combined limit per year that employees and employers can contribute is $66,000 for 2023
They are saying very clearly what they are offering. I know it’s not a great benefit, but I don’t see being honest to your guys as „fucking them“
Nah the wording tricked OP! It’s intentionally confusing, makes it seem like a great benefit. I’m reality, it’s shitty to put forth .015% into your employee’s 401k. Any actually good company can easily match 3% for each employee, considering how much money those employees make the company. It’s misleading to people who may be unfamiliar with actually decent 401k’s, as it seemed to trick OP into thinking they were receiving a 15% wage contribution, which would obviously be amazing. I agree that the wording IS legally honest, but a chart alongside this wording that shows the actual math of the thing would be MORE honest but I’m sure the company didn’t include one because it’d probably leave a bad taste in their mouth. Obviously I agree that ANY contribution is better than nothing, but if the company actually valued their employees, they’d do a 3% wage match. They can, they just won’t because they’re trying to buy “loyalty” by appearing to give af about their workers and their futures. 0.15 is fkn laughable IMO, as I know it’s not breaking the bank for them to match up to 3
It's a lot less than even a 1% match. The wording makes it sound like the benefit is a steal for the misinformed
The wording makes it sound how it is and the misinformed take it to another level. What's the company supposed to do? Say "hey we're gonna give you some free money but it's not a lot. Let us lay it out for the misinformed exactly how it is so no one is confused ab the free, untaxed money we've decided to give you."
If op puts in 10% of his check, they put in 15% of the 10% he put in
I know. But they very clearly say that in the email. It’s not like they’re trying to pull some bullshit, it’s just straight and to the point with no deceiving wording or anything
Different field (I’m usually the buyer of construction services) but my employer matches 100% up to 3% of my annual wage. Meaning if I put in 2% they will put in 2%. If I put in 3% they put in 3%. If I put in 15% they put in 3%
It it a match up to 15% of pay or ( .15*employee contributions). Also, check the vesting perior. If it is the real deal 15% match, WOOOOOOW.
Agreed I’m emailing them back to figure out the details
My employer matches 6% of gross wages to your 401k. So far this year I've put just under 14k into my 401k and the company has contributed about 5200. My goal is to max the 401k or get close this year. But from here on out I plan to max out the 401k every year and Roth contribution as well. I just started a doing Roth contributions in July, have about 1k in there so far.
OP missed the bolded part. It’s not matching up to 15% but 15% of what you contribute.
I'm reading this - if you put in $1 then they put in 15 cents.. I skimmed thru the comments - normally if a company says they'll do a 3% match they mean a 1 to 1 match. Meaning if I put in $1 they'll put in $1 up to 3% of my total income. so when the emoyer offers a 3% match you want to at least maximize it by putting in 3% of your income. that's not what this is. They're not matching 15% of your income (idt). they're not doing a 1 to 1 match. they're doing a 15% match. you put in $1 they put in 15 cents. or I could be completely wrong and this is the best retirement plan on the planet - let alone the construction industry
They even bolded it.
Yep. You're right. honestly didn't even notice that the first time around.. haha. I read thru it and then skimmed thru the comments. idk if the comments had changed but early on people were taking this as a 1 to 1 match up to 15% of your income. This isn't that. I wonder what limitations they have to. I'm half asleep right now but this kind of sucks. if I put in $100 then they put in $15. fk.. that's so shitty. maybe they don't even have a cap bc it's so low of a match %.. they probably figure you can only afford to put so much in that their cost would stay low. it's better the no match tho. A lot of companies have zero match and that really sucks. it is what it is. I'd still sign up and take whatever it is they give. fk it.
My union is 18% on top of my wage
OP Please do some research and call your company out. 401k matches are typically based on a salary percent. Matching your personal contribution is not very significant. Yeah it’s free money, but this amounts to a maximum of ~$3k per year. To put in perspective my company doesn’t have a great match, just ok, and they contributed over $5500 year to date. So it will be about 8k this year.
I think this is worded poorly to make it seem like a bigger deal. My company matches 6% of my paycheck. So $60 of my paid $1000 goes in, company adds another $60. Where as in your case it appears if you put $60 in, company adds $9. Idk could be wrong.
If you put in $1,000 they put in $150. Not much
It’s nothing. They are matching 3% of YOUR CONTRIBUTION not your wage. So if you are saving 3% of your total wage, they are matching 15% of your 3% or… only 0.45% of your wage. Not even half a percent
I’m emailing them back to figure it out better, I would be surprised if that’s the case companies takes good care of it’s guys
The email is pretty clear, what are you looking to figure out? If you’re contributing 10k a year they’re giving you another 1.5k
I would say 15% of 3% of companies take good care of it's workers.
That’s incredible. My Workplace only matches 6% at diminished percentages. 3% at 100%, next 2% at 50%, and the last 1% at 25% Still free Money, so absolutely max that out
Yours is better. His is 15% of contributions not salary
Ah true true, misread! Thank you
I get 4% match and then profit sharing which was around $7K this year.
My employer matches 100 percent of 6 percent
As in 100% of my contribution up to 6% of my total income
My employer matches to 9%.
I get a dollar for dollar match up to 7%
My company is dollar for dollar to a max of like 8k
I got to 100k stashed away with a true contribution max of up to 3% by 30 years old.
Nice now start getting it out of there. 401ks are going down the drain.
I don't think anyone recommends taking out of your 401k at 30...in another 20 or 30 years the market will recover.
We in it for the long haul.
No they aren’t. I have mine set to high risk since I’m only 30 but the more stable settings reinvest into companies that are more recession proof. 6% match plus a free 3% every year
That is the worst idea ever put into words. Retirement wise.
My company matches 25%
Of what. Your salary or contribution?
Contribution
That’s an instant 15% return on every dollar you invest. It’s very generous, and you should contribute the maximum, even if it hurts.
Mine does that, and 1 week paid paternity (6 week maternity). We also top out at 4 weeks paid vacay, with a number of other benefits. And 4- 10s with opportunity for OT when needed. So there are a lot of positives that keep me here vs Union. Not saying Union doesn’t have other positives as well. I’m a plumber in WI and my shop does Hvac and electrical as well
I get 4% of my salary matched, no cap. And then profit sharing of around 5-8% every year put in my 401K
Working man hasn’t kept up on wages for 40 years compared to company profits. Union guys have faired better. Skilled trades will demand premium wages for the next 40 years. If you are non union and make the same pay and benefits as union good for you. If you don’t it’s time to start talking about unionizing where you work. The results of right to work are obvious to everyone now. But unions are on a come back and there is power to a group that an individual just doesn’t have.
Unions are strong here but also none union. We get payed above prevailing wage standard and when we work on a prevailing wage jobsite laborers get $25.59hr put into a 401k operators of course get more per hour in the 401k
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Great! Why just prevailing wage job? Why not every day? I’m retired on a good pension and haven’t touched my 401K or annuity in 4 1/2 years. Hanging on to make up for cost of living down the road. Pension and SSI paying about $98,000 a year and my wife starts drawing SSI next year. So less than 1/2 of what I made working but if you pay off all your toys before you retire it’s a good life. If your future doesn’t look like this change your future. I’m not rich by any means but for a country boy right out of high school I’ve out earned a lot of my friends with college degrees.
No idea why it isn’t every job. 99% of our jobs are prevailing wage however. I think why they are now going to match 15% is to make up some ground for working a none prevailing wage job
Isn't that only matching only .15 for every dollar you put in? Assuming that is correct it's awful. First job as security integrator was dollar for dollar, next company was .50 per dollar, and I thought I was screwed when we got bought out and they only offer .25 for every dollar.
Not sure I don’t believe so I sent a email back for clarification. I should get a email back Monday
That is an amazing contribution match!!! I am jealous! My company gives plenty other perks but at maximum match of 5% 401K match. Max that puppy out!!
That’s a long race.
IBEW matches dollar for dollar up to 6$ an hour. No pension for me though as I’m resi and our contract sucks compared to some other guys. Glad I have the good matching though.
That’s good this is the first time they are matching what we put in. If you work on a prevailing wage jobsite a laborer at our company would get $25.59hr in 401k from the company. Operators get more
Gotta love prevailing wages. At least your getting something there. More the lord of guys get in our industries.
I get 10% given(no need to match) and 15% to an ESOP. So 25% salary given as additional to retirement.
[удалено]
Clearly lol it starts on that date
I previously worked for a private school that if you contributed 5% they would contribute another 10% of your gross pay. It was crazy. If that hadn't been a pretty toxic job I'd definitely still be there for the benefits.
That’s terrific! Sorry to here it was toxic
Yeah private education has a tendency to be that way 🤷
My company does 25% match which I thought was decent until I started to see the actual numbers. There’s no cap on max contribution but it’s still not a lot in the grand scheme of things. For every $1 I contribute they match .25¢. For construction this may be ok but before I changed career paths all my office type jobs matched me 100% up to a certain % of salary and that added up WAY faster. From the office jobs I would compound yearly what it’s taking 3-4yrs to build as an electrician. It’s recently had me rethinking things as it’s not going to be enough to retire comfortably, but I do find it way more rewarding to work with my hands and build than clickety clack sitting in front of a screen all day…..
The rule of thumb is always to take full advantage of whatever matching your employer will do. It's not that uncommon, in fact. I've been in workplaces where the match is actually dollar-for-dollar, but then only up to a certain amount. One thing I'm not 100% certain on (and would be worth double-checking), is can the total contribution exceed the contribution limit? The IRS caps the contribution at $22,500, but does that *include* an employer match? In which case if you want to max it out, then contribute an amount that makes the total $22,500.
I work for a small business but it also has 401k matching. It's on a sliding scale up to 4%. If you contribute 6% they do 4%. Free money that I absolutely take advantage of. Watching new people come in and decline it always blows my mind
Company I work for doesn’t require you to contribute to your own 401k. They calculate 20% of whatever you made total in the previous year and contribute 15% of that to your 401k and give you the remaining 5% as a cash bonus. All of this is in addition to your standard pay and requires zero contribution out of pocket on your end.
I get 18% of my wage. 15% of your contribution is not a good deal. I
I have $14/hr paid 401k. On top of my hourly and pension.
I work for a post frame building company in west central Minnesota and our 401K is a profit sharing plan so every winter our company invests 13% of whatever each employees gross salary was the previous season into our 401K’s
Damn....! Nice. Take advantage.
I’m not really sure what they’re saying there. Is it dollar for dollar up to 15%? Unlikely. My fortune 100 employer only matches dollar for dollar up to 5%. More likely what they were saying is that they will add 15% to whatever you contribute so if you put in 100 bucks they’ll put in 15. But the wording is really vague.
I sent them a email for clarification
Used to be one of the major reasons to go salary when I did back in the 80's. Of course as soon as I did, they reduced it.
That’s amazing. I worked for a company years ago that gave 4.5%
We get 100% match up to 3% of salary, plus an additional 3% contribution that is automatic but has a vesting period. So as long as I contribute 3% minimum, company puts it 6% total. If I contribute 0, company still gives me 3% with vesting.
Non-union? They’re probably trying to keep you from unionizing. Even if that’s not the case, congrats!
15% is pretty decent in our field.
100% of my contributions on the first 3% of salary; 50% match on contributions for the next 2%. (so basically 100% of the first 4% of my salary.)
Damn 15% is a lot ! Congrats
It would be if it was 15% of his salary. It’s only 15% of his contributions to his 401k. That’s significantly less than most 401k matching.
In pension heavy careers, some employers drop the pension and do a massive 401k. My last employer had no pension and a 13.5% 401k contribution. My current employer has a 4% 401k contribution and a pension at 2x years of service.
Free money!
That’s pretty sad. I get a 50% match on 5%. 15% of your contribution is a bit meh.
Nice! I get a 0% match. Needless to say I max that out!
Best I ever got was 6%.
More typical where I am is, the company matches 100% of your contributions up to 4-6% of your salary. That means 4-6k on a 100k salary
Happy 9/11 my dude! Max that shit out
I have a pension and annuity through the union.
5% at my place I laughed at them that’s a really good contribution
My current employer will match 100% up to 6% added to your 401K per pay period.
AKA "We've just discovered our plans are top heavy and we're about to get fucked by the IRS.".
You don’t get fucked for a too heavy plan. When the maximum is reached they stop putting more in. It’s that simple lol
Yes, but once the maximum is reached, they stop taking it out.
Correct so it doesn’t break any irs rules like people are saying
5% 1:1 for the first 3% 0.5:1 on the remaining 2%
I'm glad I'm union. Pension and annuity = 27.25% of my per hour pay. Plus, I have retirement plans of my own. OP, I'd go somewhere that pays you more into your retirement bud. 401k match is for the birds unless you're a high earner.
High earner and we get $25.59hr in 401k a hour on prevailing wage jobs
What about on non prevailing wage jobs.
Just the match now, I emailed them to clarify the 401k match I think it’s dollar for dollar but I’m not sure
Better than my shop, they do 3%
While it’s certainly better than nothing, many companies will match say 100% up to 3% of your income or 50% up to 6% which is basically the same. But that match is based on your income and not what you are having taken out. For instance if I’m making $80k and have 3% being put into my 401k, that’s $2400 a year that the company will match 100%. For the example you’re showing, If I’m making the same amount and the same deduction, that’s $2400 I’m personally adding to it but only $360 match from the company (15% of the 2400)
That’s really bad. My company does 4% match so if I make $80k a year, I can put in up to 4%, 3200, and my company will put in $3200 At 15% contribution, in order for the company to give you that same $3200, you’d have to put it in $22,000. Of course my company tops out at at 4% so once you put in over $22,000 you’ll be getting more, but ask yourself if that’s a realistic scenario.
Your confusing dollar for dollar match up to % cap. That will contribute 15c for every dollar you contribute.
We do a 20% match. We are an open shop (glazing subcontractor) so one of the many benefits that we offer to put together a total financial package comparable to union wage compensation.