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I believe the firms match is 25% up to the first 6% of your contribution, so 1.5%. So if you contribute 6% and make $100k, they will contribute $1.5k. The firms contribution is the same if you contribute 19.5%. That being said I’m not sure how that works if you vary your contribution +/-6% throughout the year
There is guidance on this in the benefits express library. I literally just read this 2 days ago. You wind up losing money on the firms matching if you finish early. There is a break down in the guidance that shows you everything. It was really helpful
This is correct. It’s 25% of 6% of each paycheck; if your last paychecks don’t include a contribution you won’t get a match.
Rising Star
Most companies calculate the match and fun each pay period up to whatever (6%) and then at the end of the year they’ll do a true up calc for anyone that contributed over the match max but then had periods of $0 contributions. It is not mandatory that they do so. Other companies do the calc one time at the end of the year and fund in a lump sum. Typically the plan document doesn’t cover this minute detail so you many need to ask someone in benefits/HR.
Considering if the limit is up to 6% of your paycheck, if the 19.5k is exceed the 6%. Pretty sure you don’t get the matching for the contributed amount exceeding the 6%. Also if you contributed your own money that exceed the annual contribution max too early, the firm can’t contribute additional match amount later in year
The firm will match post-tax contributions as well. If you’re that concerned about ramming through the 19.5 you can do that, contribute the 6% to post-tax after, roll that to a roth IRA and then withdraw back your principal. Lot of hassle to that though
It’s actually super easy now if you have your IRA with a bank that works with RolloverCental. Just initiate it in benefits express and it’s all done electronically. No more waiting for paper checks in the mail
And they don’t do a true-up at year end? Wow that blows. My company calculates the true up in December and pays it out the following March. So you lose out on match earlier in year when you have $0 contrib but then they make up for it later.