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What is the better choice VTSAX or VTWAX
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Happy Easter everyone
The match is in addition to the 19.5k limit. So if with a 6% match @ 100k salary you contributed 19.5% per paycheck you would max out your 401k and your company would contribute 6% of your salary so you’d effectively contribute 25.5k when factoring in the match. The limit only applies to the money you put in your self. If you want to spread your contributions over the course of the year, you would contribute 19.5 / 125 = 15.6% of each paycheck
Sure. This situation was meant to be an example of a full match at a 100k salary to illustrate how the match is not factored into the 19.5k limit
EY match is 25% of the first 6%. To receive the maximum EY contribution you should contribute at least 6%.
3 years you jump from 25% on first 6% to 50% on first 6%.
Chief
OP to get the most EY match you need to contribute at least 6%. The Max out the allowed contribution you need to contribute 19.5k.
I make $130 and the Accenture match is also 6%. I think if you contribute 12-13% per paycheck you should be around the right area for the 19,5K
FYI the company match does not count towards the $19.5k contribution limit. You can increase up to 15% if you make $130k
Thank you!
Rising Star
19,500
The 401K personal maximum for 2021 is $19.5K (this does not include the firm match). If you make $125K per year you would contribute 15.6% of your annual income to max our your 401K contribution. $125K * 15.6% = $19,500.
So is it fair to say that for an individual making $100k, if they contribute $6k, EY matches $6k. If that individual contributes 10k, EY still matches $6k. Correct?
Chief
No contribute 6 percent the get 25 or 50 percent of that depending on service time. The most they can get is 50 percent of 6 percent