why are bigcos doing 50c per dollar 401k match
Whats with the 50-cents-on-the-dollar 401k matching these days? I know of two comanies that are well known for incredible benefits - google and linkedin - that do this. Paypal matches 100% up to 4% of salary. This is far better.
It's only far better if your base is over 237.5 (237.5x0.04=9500) where 50 cents on the dollar is capped at 9500 but you can reach it if you max contributions regardless of base
$250k using 2020 numbers but I get what you’re saying. Problem is you have to max your contribution to get max matching funds instead of only 4/6% and investing the rest elsewhere
You should be maxing your contribution though
Because it is paltry compared to what you get in TC from those companies. You want to invest in retirement sell those RSUs and diversify into a total market fund for your retirement. Faster than building up a 401k there
Entitlement
Your salary has to be $225,000 to come out ahead with that. The vast majority of Google employees probably come out ahead with their 50% matching.
% based allows more flexibility - at 200k instead of forcing 9% to max matching dollars, you can do only 4% to get the full match and then throw the other 5% into something else
That doesn’t make sense. You should be maxing out your 401k regardless of the match. If you make 200k you should be able to afford to have that extra 5% tied up in your 401k
$1.25 for every $1 upto 6% of pay or $10k
$10k limit is not great
Way I heard it, it's all from same money pool for benefits. If everyone prefers the money there's a trade off of food, commuting benefits, etc. My last company always did surveys around what people desired the most and planned benefits around it.
PayPal is stupid. Can't believe they handle $$$. I like my 50% match.
I don’t understand this post
I never can understand what X percent match of the first Y percent of salary means. I just look at the maximum total match. Since I am maximum out my 401k each year then I always get the match. Getting a match of 9K at VMware this year. Up from 6K. Little known facts: * The maximum total 401k contribution in 2019 is actually 56K, not 19K. The 19K is the maximum employees can contribute directly to pretax or Roth. The remaining 37K is the combination of the employer match and employer after tax (after tax is useless unless it can be converted immediately to Roth — aka the mega back door Roth). * Employers don’t have just match. They can contribute the entire 56K. There are a handful that do, mostly oil companies. Instead of stupid 4 and 6 percent matches I’d like to see a 1000 percent match. As in for every dollar I contribute my employer contributes 11. It is time for FANG to stop fucking around.
100% match for 6% of salary at Credit Karma (base are pretty high at CK due to bonus already being folded in base)
Wow awesome