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This is Some Good News!
By JLP | 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.
Topics: 401(k) | 10 Comments »
December 30th, 2005 at 11:55 am
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.
December 30th, 2005 at 2:57 pm
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).
December 30th, 2005 at 3:38 pm
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.
December 30th, 2005 at 9:05 pm
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.
December 30th, 2005 at 9:29 pm
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.
December 30th, 2005 at 10:14 pm
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.
January 2nd, 2006 at 4:49 pm
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.
January 3rd, 2006 at 12:59 pm
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.
March 21st, 2006 at 12:06 am
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.
June 4th, 2006 at 8:29 pm
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.