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Any companies doing away with 401k match?
08-14-2008, 10:52 AM
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#1
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 222
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Any companies doing away with 401k match?
Just read this article, and was wondering if anyone's experienced their company taking away a 401k match:
No 401(k) match? No problem - MSN Money
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08-14-2008, 11:14 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 2,020
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Not here...
YTD company match: $5,869.63
It's called out as part of my total compensation. If they take it away, then I'd expect to either get that as an increase to my salary. Otherwise, call it what it is, a pay cut.
If it's a move to 'remain competitive' then that's understandable and the employee is free to figure out if they want to stick around and help the company remain competitive or if they want to find a new job with more competitive pay.
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08-14-2008, 11:15 AM
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#3
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Moderator
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Not yet. They are currently matching the first 5% of pay dollar for dollar.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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08-14-2008, 12:32 PM
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#4
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Moderator Emeritus
Join Date: Dec 2005
Posts: 10,125
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Still matching here. However, I suspect that we won't be getting as much profit sharing.
__________________
Angels danced on the day that you were born.
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08-14-2008, 12:38 PM
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#5
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Recycles dryer sheets
Join Date: May 2006
Location: Vienna
Posts: 226
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So far so good. You are "forced" to contribute 2% of your salary, but then they dump in 7.5% as a match. After that, anything up to your additional 10% input is matched at a third. So if you max out, you end up with a total match of 7.5 + 3.33 = 10.83%
Larry
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08-14-2008, 01:29 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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 Quote:
Originally Posted by madsquopper
So far so good. You are "forced" to contribute 2% of your salary, but then they dump in 7.5% as a match. After that, anything up to your additional 10% input is matched at a third. So if you max out, you end up with a total match of 7.5 + 3.33 = 10.83%
Larry
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It's the best cheapest way to keep employees around..........
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
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08-14-2008, 03:29 PM
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#7
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Recycles dryer sheets
Join Date: Apr 2007
Location: Longmont, CO
Posts: 73
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We have never had a "match," but the profit sharing contribution from the company is a minimum of 3% of salary and refered to a "Safe Harbor." Total profit sharing contribution over recent years has been in the neighborhood of 7-8% of total annual earnings. It is my understanding that the "Safe Harbor" permits higher earning employers to max out on their contributions. A number of years ago, I had to stop making contributions in October for that reason. Now, with the "Safe Harbor" provision, there are no restrictions.
Milkman
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08-14-2008, 09:55 PM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,421
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Just as I FIREd, our company did away with the pension. This is one of the reasons I bailed when I did.
At the time, they matched 83.5% of 6% = 11%. What they did to soften the blow with the pension is to contribute up to an extra 3% into the 401k. The increase is dependent on how the company does each year. If they kick @$$, the employees that bother to put money into the 401K could do quite well (up to 14% for the cost of pre-tax 6). Of course, there hasn't been much @$$ kicking in the 2 years since I left.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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