This is Some Good News!

December 30, 2005

I was reading some mail from the human resources department of my wife’s employer and noticed that they are raising the company match of their 401(k) to 75% of the first 6% of contributions. So, if we contribute at least 6%, we will get a 4.5% match (6 X .75 = 4.5). In the wake of all the different companies that are reducing or eliminating company matches (which I think is REALLY STUPID), I feel very fortunate to have a company that is actually raising the match.

I’d like to know what other companies are doing. If privacy is a concern, you can email me at the address listed in the right sidebar. I would like to know the company you work for and the company match. I will then put together a table with the company name and the match amount, if any. No personal information will be published. It would be interesting to compare various companies.

10 responses to This is Some Good News!

  1. Congratulations on the increased match!

    My company, a semiconductor manufacturer, doesn’t match any of our 401K contributions. However, they do contribute up to 12.5% of an employee’s salary to a profit sharing account. Historically they’ve actually hit 12.5%, but the last couple years the contribution has been 8%. I believe the profit sharing account vests over 6 years, after which you are fully vested for all future contributions.

    This contribution is independent of one’s individual 401k contribution. This is a nice deal for those who wouldn’t contribute to a 401k even with a match, but I do like the idea of matching contributions to provide employees with an incentive to save their own money as well.

  2. My company, a small architecture firm, matches the first 3% dollar for dollar and matches 50% beyond that up to 5%. That’s 4% for my 5%. The good part is I’m completely vested from the beginning. At my last job, they contributed about the same but it took 5 years to get completely vested, so when I left at 3 years I didn’t get to take it all with me (I think I got 60% of their contribution).

  3. My employer, a rather large financial services company that went public at the end of 2001
    (hhhmmmm), offers 100% matching on the first 4% of the contributor’s salary. I contribute
    that 4% and invest the rest elsewhere. The match is vested after three years of service,
    which I completed earlier this year.

  4. I get 3% match on 4% (full match on the first 2%, half match on the next 2%). It vests immediately, which is really nice, and the pension vests after 5 years.

  5. My company, a semiconductor manufacturer, will match the first $4000 that you defer at the rate of $.50 per $1.00 deferred. Any deferrals above the $4000 amount will continue to be matched on all deferrals up to 6% of your salary. The match will be in the form of company common stock.

    Your are always 100% vested in your 401(k) contributions. The matching contributions made by the company will have a three year cliff vesting schedule.

  6. My company, a large computer firm matches 50% of the first 6% I contribute. I would love if they upped it to 75%, congrats on that.

  7. I work for a consulting and IT implementation company with 25,000 employees, mostly in Canada and the US. The 401(k) match is capped at $1,000 per year. Before that, it’s half of our deferrals up to 6% of our salary.

  8. I work for a small nonprofit that matches an unheardof 2-to-1 up to 4% of my salary to a 403(b).

    No matter what Dave Ramsey says, when I start my baby steps after the wedding, there’s *no way* I could give up that kind of free money.

  9. My employer matches 20% of the employee’s contributions. I’d love to see a chart that listed the Employer’s Name and the rate of the 401(k) match. I overhear some people talk about getting much better matching, like $1 per $1, or 50% matching, yet I wonder how prevalent those benefits really are. Maybe I should feel lucky to get any “free money”, but somehow I feel that my employer’s 20% match is way below what other companies are doing.

  10. wow, i feel lucky. my company, a drug retail chain, has had a 5 year average of $3.05 matched to my dollar. i can contribute only 2% however and vested 100% after 6 years.