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401(k) employer matching question
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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401(k) employer matching question
is it better to have a 50% match up to 6% or a 100% match up to 3%?
i have no idea how the math would work on that.
tia
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Posted 5/12/08 10:36 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: 401(k) employer matching question
Let's say you have an income of $100k.
Let's go with Scenario #1:
YOUR 6% contribution is $6000
The COMPANY match is $3000
Total = $9000
Scenario #2:
YOUR 6% contribution is $3000
The COMPANY match is $3000
So, technically, under both scenarios the company match is the same. But, with Scenario #1, you have to contribute more of your own money to receive the company match.
Does that help?
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| Posted 5/12/08 10:55 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: 401(k) employer matching question
Posted by Bxgell2
Let's say you have an income of $100k.
Let's go with Scenario #1:
YOUR 6% contribution is $6000
The COMPANY match is $3000
Total = $9000
Scenario #2:
YOUR 6% contribution is $3000
The COMPANY match is $3000
So, technically, under both scenarios the company match is the same. But, with Scenario #1, you have to contribute more of your own money to receive the company match.
Does that help?
YES!
this is where it get's funny... i work at h&r block AND a tpa... i should know this, but i was just drawing a blank.
"drawing a picture" with numbers helped me lots!
thanks
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| Posted 5/12/08 11:04 AM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: 401(k) employer matching question
I would go with the 3% 100% match. I would rather get more money from the employer when compared with that I'm putting in.
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| Posted 5/12/08 2:13 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: 401(k) employer matching question
Posted by JenniferEver
I would go with the 3% 100% match. I would rather get more money from the employer when compared with that I'm putting in.
Agreed -- you have to contribute less to get the same amount of money with this option.
However, if you contribute more than 6% anyway, you'll wind up with the same contribution from your employer under either scenario.
ETF typo
Message edited 5/12/2008 2:34:19 PM.
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| Posted 5/12/08 2:33 PM |
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