Originally Posted by
WheelInTheBack
So basically if you’re already contributing the max that the company will match (4% for years 1-4 for example) the direct contribution is completely negated and you’re really not getting anything extra in this new TA?
Disclaimer: I already bounced, and it seems I made a good move. But I’m still heavily rooting/empathizing for those I left behind.
If you're less than 1 year it is a 3% vested company addition to your 401. So about 1800$ per year as a New FO.
If you're between 1 and 5 years and currently contributing the 4% there is no effective change. If you aren't putting in 4% you're an idiot who needs to talk to a financial counselor, but you will now get a 3% contribution from the company anyway.
If you're between 5 and 15 years who is contributing the current Match you will effectively get a 1% increase in their contribution, and can even decrease your portion by 2% and still come out ahead on their portion.
If you're over 15 years and contributing your max match of 10 or 12% you can decrease that contribution by 1% and still net a 2% increase in their contribution and will no longer be subject to the highly compensated employee problem.