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Bonus for EY S&O?
How would y’all grow 300k cash to 1M in a year?
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2% is low.
4% seems average.
6% is good.
Thanks!
Bowl Leader
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.
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
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.
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.
Thanks for the insight though