Dumb 401k question.

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09-26-2018 | 07:43 AM

Rahlifer

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Dumb 401k question.

Pardon the ignorant question. I'm dense as a tree stump and my google-fu has not exactly satiated my curiosity. Spirits profile page mentions a direct contribution of 11% rising to 15%. I take it that means the company simply puts that percentage of your pay into your 401k. It's not a "match" like most regional 401k setups?

09-26-2018 | 07:49 AM

TrojanCMH

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Quote:

Originally Posted by Rahlifer

Correct they will put that amount in whether you put any in or not.

09-26-2018 | 07:51 AM

Rahlifer

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Thanks. I figured that's what it meant. I just need things spelled out for me. Usually with small words.

09-26-2018 | 08:06 AM

B200 Hawk

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You can also elect to contribute a non matching portion of your check as well. (sorry if this is a DUH statement)

09-26-2018 | 08:06 AM

elmetal

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Quote:

Originally Posted by Rahlifer

correct. the term you're looking for is Direct Contribution (vs match)

09-26-2018 | 09:33 AM

brokepilot2

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It’s worth noting that it’s a 5 year vesting schedule for the company contributions. For anyone using NK as a stepping stone, it’s going to be less than the 11% if you leave before 5 years of service.

09-26-2018 | 11:16 AM

Qotsaautopilot

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Quote:

Originally Posted by brokepilot2

6 years completed (7th year pay) to be fully vested

09-26-2018 | 11:39 AM

Tranquility

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Quote:

Originally Posted by Qotsaautopilot

6 years completed (7th year pay) to be fully vested

This. 20% vesting per year after 2 years completed. (2 years completed = 20% vested, 3 years completed = 40%....etc.)

09-28-2018 | 07:32 AM

full of luv

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Quote:

Originally Posted by Tranquility

This. 20% vesting per year after 2 years completed. (2 years completed = 20% vested, 3 years completed = 40%....etc.)

So say the company puts in 16K your first three years at NK for a total of $48K and you get a total return of 15% on that money due to conservative stock investments for a total of $55,200. Then you leave after 3 years, your saying you'd only take 40% of that money with you in your 401K (so a total of $22,080) and the company gets to keep the rest?
Just trying to understand.
Thanks

09-28-2018 | 08:06 AM

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Ducttape

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Quote:

Originally Posted by full of luv

It’s a simple graded vesting schedule. So yes, if you leave after completing 3 years, you’re entitled to take with you 40% of the company investments and the rest is forfeited back to the company.

Usually the company is required to transfer the “forfeited” funds back into the program for existing employees; to fund their plans, or plan costs, as reallocated forfeited funds.