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Many law firms have no 401k match or a 401k match ONLY for staff. What you describe seems off and seems it would fail certain ERISA tests re rules for highly compensated employees
I’ll send this to ERISA specialist and get back to you
Why is it 5x? Perhaps they match the same percentage for all employees (so, associates not partners), and the attorneys can make 5x as much as non-attny employees
Regardless of how much the attorney match is, I’d suggest only switching jobs or careers if you want to for other reasons. My firm doesn’t match for anyone. So if you leave your current job, you may not get any match at all.
Rising Star
I've never heard of flat rate matching but it makes sense a higher earning individual would have a higher flat rate. That's how it would work out if you had a percentage that was the same for everyone, higher earners would get more.
I wouldn’t get worked up about this. Attorneys have 3 additional years of professional school and often 6 figures of student loan debt. Comp and benefits will differ between attorneys and staff.
I dont know what size firm youre at, but its not normal. In fact most biglaw firms dont offer 401k matches for attorneys at all, because of ERISA rules.
Yep am in biglaw, no matches. I think staff get a percent match but not positive on that.
I have never heard of a 401k match for associates, at least not in biglaw. That would effectively make compensation way above market because everyone would max out contributions.
There are a few AmLaw 100 firms that have small matches. You'd be surprised how few people actually max out their 401k's