What would you consider as an acceptable 401k/HSA match? One company in IT consulting has provided a 2% match vs another firm offering 5-10% even. Compensation is about the same so wouldn’t account for it. Does anyone know what leads to those differences from a tax advantage situation?

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2% is low.

4% seems average.

6% is good.

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Thanks!

One of my first jobs, I got a 3% contribution, no match needed. They also offered another 3% match at the 1:1 level. I was young and dumb and only took the initial “free” 3% and missed out on the extra 3%. Every job after that was 6% contribution at the 50% match. I’ve seen friends that got as high as 10% contribution so they considered it an additional 10% TC.

I would probably negotiate a higher base or bonus if there was a lower 401k contribution amount.

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Thank you!

I’d say median is 6% for most companies on match/contribution. 2% match is very low unless there is some other retirement benefit, like pension or something that makes up the difference

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Thanks!

Agree 4-6% seems what I've seen my whole career. There are outliers, I believe places like Fannie Mae do something crazy like 12-15%, but those aren't average.

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Thanks for the data point!

2% match is the IRS minimum amount for a 401(k) to qualify as a 401(k) without some very complicated accounting tests every year. Everything above that is upside for the employees. I worked for one company that matched 100% on your whole contribution but that’s almost unheard of. A 50% match on 6% so 3% on 6%) is probably the broad market average.

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Thanks for the insight though

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