Originally Posted by
Qotsaautopilot
Not sure how many times I have to say it but a match of any kind is hurting us. YOU DO NOT WANT A MATCH. You want a defined contribution.
Let's go with your 12% hybrid match/DC example with a 9% match and say you make $250k.
9% of $200k is $18k (your personal max) the company matches that $18k. They also give another 3% on that money in DC which is $6k. So what happens to the other $50k in earnings you made? You maxed out your match so instead of getting 12% ($6k) on that $50k you are only getting 3% ($1500). You left $4500 in retirement funds on the table because instead of a straight DC plan you had a hybrid plan. You thought you were getting 12% but you got 10.2% in reality.
If our rates go where they should be this will be a problem for every single ca and many fos if we have a hybrid plan with such high matching. You want pure DC and you can contribute if you want or take your 9% money back in your paycheck
Not quite accurate. Using you numbers 9% match with 3% DC.
You would get 3% on the Entire $250,000. Not just the "remaining "50,000"
$250,000 x .03 = $7500. Spirit would match your $18,000 And an additional $7500 in DC. Add your 18k contribution and That's a healthy $43,500 a year.
16% DC would obviously be cleaner and easier to calculate, but a hybrid can work. For me anyway at least. No matter what it is I will be maxing out my $18,000 no matter what spirit puts in. I wanna lower my taxable income by 18k every single year. Period. I'm single without kids and without a bunch of toys...so having said that I don't mind the hybrid... Simply because I'm gonna max out my contribution as long as the irs will let me.