BoilerEngr
Confused about dryer sheets
The Good News: I am in line for a decent raise at work (in the $10k range) later this year.
The Bad News: My 401k contributions are already maxed out and my employer only matches up to 1% of my annual salary.
I am thinking of trying to negotiate my raise such that it would increase the employer match in my 401k to around 10% (lets say around $8k) and have the balance of the raise go to increasing my salary. This would reduce the tax burden of my raise and effectively increase the annual funding to my 401k. From what I have gathered, the employer contributions do not count towards the $16,500 contribution limit, so raising that amount is the only way you can increase funding to your 401k beyond the max contribution.
I am wondering if anyone has experience negotiating a pay raise or a salary package in the form of an increase in the employer 401k contribution? Interested in the both the financial implications perspective and the employer negotiation perspective.
Thank you!
The Bad News: My 401k contributions are already maxed out and my employer only matches up to 1% of my annual salary.
I am thinking of trying to negotiate my raise such that it would increase the employer match in my 401k to around 10% (lets say around $8k) and have the balance of the raise go to increasing my salary. This would reduce the tax burden of my raise and effectively increase the annual funding to my 401k. From what I have gathered, the employer contributions do not count towards the $16,500 contribution limit, so raising that amount is the only way you can increase funding to your 401k beyond the max contribution.
I am wondering if anyone has experience negotiating a pay raise or a salary package in the form of an increase in the employer 401k contribution? Interested in the both the financial implications perspective and the employer negotiation perspective.
Thank you!