# What's your Employers 401K Matching Policy? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [July 18, 2011, 8:33pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492 "2011-07-18T20:33:34Z")\ **Posts on this page:** 16\ **Page:** 3
**Author:** ![CPomeroy](https://avatars.discourse-cdn.com/v4/letter/c/ed8c4c/32.png) [@CPomeroy](https://boards.straightdope.com/u/CPomeroy)\ **Post date:** [July 19, 2011, 3:47pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/41 "2011-07-19T15:47:41Z")
Mine is similar to others in that it is not a match. If you participate you get a flat contribution from the company. It is also 100% vested from the start. ---
**Author:** ![aktep](https://avatars.discourse-cdn.com/v4/letter/a/f0a364/32.png) [@aktep](https://boards.straightdope.com/u/aktep)\ **Post date:** [July 19, 2011, 3:47pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/42 "2011-07-19T15:47:45Z")
> [@Rand\_Rover](#): > > We have no matching (at least for attorneys, I don’t know about admin staff). I’ve been told by an HR person that the purpose of matching is to entice lower-level folks to participate so the plan isn’t too “top-heavy.” If that’s true, then you folks with low or no matching work for companies that think ýou are smart ebough to save for your retirement without being enticed to do so, so that’s good I guess. This top-heaviness is why we had to switch to more-or-less-compulsory retirement plan enrollment this year. HR said we were in danger of reaching some point that would have had major tax implications (for the participants or the employer, I don’t know). ---
**Author:** ![lieu](https://avatars.discourse-cdn.com/v4/letter/l/c2a13f/32.png) [@lieu](https://boards.straightdope.com/u/lieu)\ **Post date:** [July 19, 2011, 5:04pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/43 "2011-07-19T17:04:39Z")
100% match for first 4%, 50% for the next 2 up to 6%. We can (and do) contribute more, it’s just not matched. I think the normal vesting was over a 4 or 5 year period but because they were purchased shortly after I came on, a takeover clause immediately took me to 100%. ---
**Author:** ![markdash](https://avatars.discourse-cdn.com/v4/letter/m/ba8739/32.png) [@markdash](https://boards.straightdope.com/u/markdash)\ **Post date:** [July 19, 2011, 5:14pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/44 "2011-07-19T17:14:39Z")
$0.25 for every $1, up to a total of 6% of income. Vesting is 100% after 5 or 6 years, one or the other. ---
**Author:** ![DoctorJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/doctorj/32/2904_2.png) [@DoctorJ](https://boards.straightdope.com/u/DoctorJ)\ **Post date:** [July 20, 2011, 1:51am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/45 "2011-07-20T01:51:34Z")
200% up to 5%. Yes, I put in 5% and they put in 10%. And when I started three years ago it was immediately vested; you have to wait 5 years if you got hired a few months after I did. It’s pretty awesome, and helps make up for the fact that our faculty salaries are significantly below average. What’s more, the 5 wait has cut significantly into its value as a perk to attract new faculty, which we desperately need. But it helped take the edge off the pay cut that I took to go back into academics. ---
**Author:** ![Try2B\_Comprehensive](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/try2b_comprehensive/32/65_2.png) [@Try2B\_Comprehensive](https://boards.straightdope.com/u/Try2B_Comprehensive)\ **Post date:** [July 20, 2011, 2:06am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/46 "2011-07-20T02:06:30Z")
El Zilcho. I do get 5% toward non-401k investments however. Meh, better than nothing. ---
**Author:** ![bouv](https://avatars.discourse-cdn.com/v4/letter/b/bc8723/32.png) [@bouv](https://boards.straightdope.com/u/bouv)\ **Post date:** [July 20, 2011, 2:33am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/47 "2011-07-20T02:33:58Z")
I _think_ I’m fully vested from day one? If I’m understanding “vesting” properly. But I don’t have to work X number of years before I can withdraw my money, however, I do have to work 3 years before I get any employer matching. From day one, I can contribute to my 403(b). Min. is 2%, and the maximum is 100% minus benefits…well, up to the federal maximum, that is. After three years, my employer matches 10%…not up to 10%, they just put in a flat 10% whether I contribute 2% or 100%. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [July 20, 2011, 2:40am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/48 "2011-07-20T02:40:29Z")
> [@bouv](#): > > I _think_ I’m fully vested from day one? If I’m understanding “vesting” properly. But I don’t have to work X number of years before I can withdraw my money, however, I do have to work 3 years before I get any employer matching. > > From day one, I can contribute to my 403(b). Min. is 2%, and the maximum is 100% minus benefits…well, up to the federal maximum, that is. > > After three years, my employer matches 10%…not up to 10%, they just put in a flat 10% whether I contribute 2% or 100%. Nope. Vesting is when you have rights to the _employer’s_ portion. You always have the rights to your own money when you leave. Of course you can’t get to it before then (absent hardship etc.). And even when the employer matching kicks in: say you quit after 4 years, they’ve put aside a bit for you during that last year. Vesting refers to whether you get any of that. Vesting used to be a full 10 years for any kind of retirement. If you left before 10 years, you got nada (think: pre-IRA, pre-401(k)). Even in the early days of 401(k)s, I think some companies made you wait that long to get the employer’s money. About 15 years back, the laws were changed so that they couldn’t make you wait 10 years to get access to the employer’s money. I think the rules are now: either 100% at 5 years or less, or partial vesting by at least year 3, to be fully vested after 7 years (e.g. in 3 years you get 20%, in 4 you get 40% and so on). ---
**Author:** ![Kimmy\_Gibbler](https://avatars.discourse-cdn.com/v4/letter/k/bbe5ce/32.png) [@Kimmy\_Gibbler](https://boards.straightdope.com/u/Kimmy_Gibbler)\ **Post date:** [July 20, 2011, 2:48am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/49 "2011-07-20T02:48:18Z")
> [@Rand\_Rover](#): > > We have no matching (at least for attorneys, I don’t know about admin staff). I’ve been told by an HR person that the purpose of matching is to entice lower-level folks to participate so the plan isn’t too “top-heavy.” If that’s true, then you folks with low or no matching work for companies that think ýou are smart ebough to save for your retirement without being enticed to do so, so that’s good I guess. Flattering. But I’d rather have more money. ---
**Author:** ![Rand\_Rover](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Rand\_Rover](https://boards.straightdope.com/u/Rand_Rover)\ **Post date:** [July 20, 2011, 5:11am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/50 "2011-07-20T05:11:48Z")
> [@Kimmy\_Gibbler](#): > > Flattering. But I’d rather have more money. Well, if they matched your 401(k), they’d pay you less cash, and cash in a 401(k) is better than cash cash (for certain values of better). So, matching v. not matching isn’t a more money v. less money situation, it’s more complicated than that. You agreed to work for the pay package you were offered, so apparently you liked it (even if you now (or even then) don’t think you do). ---
**Author:** ![GameHat](https://avatars.discourse-cdn.com/v4/letter/g/ed655f/32.png) [@GameHat](https://boards.straightdope.com/u/GameHat)\ **Post date:** [July 20, 2011, 5:31am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/51 "2011-07-20T05:31:31Z")
5% It used to be 6%, but when the economy shit itself they dropped it to 5. Wasn’t a big deal then - they made it up with “profit sharing” which was actually much better than the 1% we lost. But then we got sold, and the new company is holding to the 5% match, no profit sharing. Still better than being unemployed, but disappointing. ---
**Author:** ![elfkin477](https://avatars.discourse-cdn.com/v4/letter/e/a9a28c/32.png) [@elfkin477](https://boards.straightdope.com/u/elfkin477)\ **Post date:** [July 20, 2011, 7:22am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/52 "2011-07-20T07:22:54Z")
100% of 0% ---
**Author:** ![Arien](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@Arien](https://boards.straightdope.com/u/Arien)\ **Post date:** [July 20, 2011, 1:44pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/53 "2011-07-20T13:44:59Z")
At my workplace we become eligible for employer-matching after 2 years. Then as long as you put in 5% of your salary, they’ll put in 10%. Also we’re fully vested from day 1 so that’s nice. I didn’t even know what that meant until I saw this thread (I’m 40 years from retirement if I’m lucky). Judging by the responses in this thread it’s pretty good although it would’ve been nice if they started matching earlier. ---
**Author:** ![Fiveyearlurker](https://avatars.discourse-cdn.com/v4/letter/f/da6949/32.png) [@Fiveyearlurker](https://boards.straightdope.com/u/Fiveyearlurker)\ **Post date:** [July 20, 2011, 2:15pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/54 "2011-07-20T14:15:46Z")
I feel fortunate! We get a free 2% (if you contribute nothing) and equal matching up to 4%. So, I get 6% for putting in 4%. ---
**Author:** ![shimmery](https://avatars.discourse-cdn.com/v4/letter/s/d9b06d/32.png) [@shimmery](https://boards.straightdope.com/u/shimmery)\ **Post date:** [July 20, 2011, 4:54pm UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/55 "2011-07-20T16:54:47Z")
We get a flat 15% regardless of our contribution, immediate vesting. Would be pretty sweet if 15% of my salary were to actually add up to anything significant. ---
**Author:** ![Try2B\_Comprehensive](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/try2b_comprehensive/32/65_2.png) [@Try2B\_Comprehensive](https://boards.straightdope.com/u/Try2B_Comprehensive)\ **Post date:** [July 21, 2011, 1:35am UTC](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492/56 "2011-07-21T01:35:32Z")
> [@Try2B\_Comprehensive](#): > > El Zilcho. It’s worth mentioning that while I don’t get any 401k matching, I _do_ get a pension. I can’t predict what it will be worth 20+ years from now, more than $500/week, probably less than $1000 but who knows. Point is, combined with Social Security (if it still exists), I may not need a 401k at all. I’ll have my non-matched 401k fund for sure, but paychecks for life from another source will be nice. [Previous page](https://boards.straightdope.com/t/whats-your-employers-401k-matching-policy/589492.md?page=2)