#401kmatch #employerbenefits #retirementplanning
Understanding Top Tier 401k Matches
What Makes a 401k Match Top Tier?
A top tier 401k match from an employer is typically considered to be generous and valuable to employees. It often includes a high percentage match of an employee’s salary, with a cap on the amount that can be contributed annually. These types of matches help employees save significantly for their retirement and demonstrate a company’s commitment to their financial well-being.
The Gold Standard: 10% Match with a $10k Cap
One example of a top tier 401k match is a match of 10% of an employee’s salary, with a maximum cap of $10,000 per year. This means that if an employee earns $100,000 annually, their employer would contribute $10,000 to their 401k account if the employee also contributes enough to receive the full match. This is considered a very generous match that can help employees build a substantial retirement nest egg.
Are There Even Better Matches Out There?
While a 10% match with a $10,000 cap is often seen as the gold standard for top tier 401k matches, there are some companies that offer even more generous matches. Some employers may match 100% of an employee’s contributions up to a certain percentage of their salary, or offer additional profit-sharing contributions on top of the match. These types of matches can provide employees with an even greater opportunity to save for retirement.
Choosing the Right 401k Match for You
When considering job offers or evaluating your current employer’s benefits, it’s important to look closely at the details of the 401k match being offered. A top tier match can significantly impact your long-term financial security, so be sure to take advantage of any employer contributions available to you. Additionally, consider how the match fits into your overall retirement planning strategy and financial goals.
In conclusion, a top tier 401k match from an employer is one that is generous, valuable, and helps employees save for retirement. While a 10% match with a $10,000 cap is often considered the gold standard, there are even more generous matches available from some companies. When evaluating 401k matches, be sure to consider how they align with your financial goals and choose the option that best supports your long-term retirement planning.
my company puts in 25% of salary without us having to contribute anything. This is honestly the best I’ve seen so far
Used to get 100% of 6% plus 4% just because and a contribution to a separate plan that was 5-9% depending on years of service. Current company is 100% of 6% plus separate plan that’s 5-9% or so.
We get a 50% match on the first 6% of salary, plus a 3% safe harbor, plus an extra 3-8% in company stock depending on age.
I am in oil & gas, if I put in 1% the company puts in 4%. If I put in 2% the company puts in 8%. Every year we get a few % raises depending on CBA, so I just split the raise half to my pocket half to my contributions, has worked for me so far. We also get a pension
My company matches 7% and gives a 10% profit sharing contribution as a lump sum annually. There’s a 5 year vesting schedule and the match/profit sharing doesn’t kick in for the first year of employment.
I know there are better deals out there, especially when it comes to TC, but the compounding of their 17% on top of what I contribute blows my mind.
Fidelity matches 7% and does a profit share of 10%.
If you make 300k and put in the 7% that’s 21k from you and 42k from them. I know quite a few people in their late 30s hat already have over $1,000,000 in their 401k from working at Fidelity since they finished college.
My company matches 1:1 up to 50% of IRS individual contribution limit; so effectively 1:1 for 11.5k and it is independent of salary
My company does 7% match for people who have been there 10 years and 9% match for people that have been there more than 20 years.
Does anyone know of if there’s a spreadsheet or Google doc anywhere where ppl have shared this info?
Looking to make my next career move and would love to know which companies to target and just get a better feel for what’s common
My wife works for a non profit. If you contribute 6% they contribute 9%.
Firefighter here. I contribute 4%, and the department contributes 22.73% of my salary to a 401k. I opted out of the pension. They also contribute $6700 (8.6% of salary) towards post employment medical costs (HSA, 501C9)
1:1 match up to 10%, no vesting period. No maximum. Also, matching contributions to 401k for student loan repayment.
My wife’s college is awesome – they put in 9.5% of your compensation when you put in 3.5%
I had an employer that just put 7% of salary into your 403b (401k for nonprofit), regardless of whether or not the employee contributed.
My company gifts 12% company stock, and then gifts another 3% 401K.
I put another 14% into 401K and then try to max out both our Roth’s with $15K.
Has to be a major airline. 18% of salary no match required
Mine does an automatic safe harbor of 5% plus a 1:1 match up to 5%
I used to work for an FFRDC that had an 8% for 2% match with no limit. That’s a 400% match, and you could save 10% and hardly notice it. If you wanted to save more, they would match 2% for 8% – basically, a 100% match on 10% of your salary,for 20% total, but you could get the first 10% for only 2%
I get a 100% match up to 9% of salary with a 5 year vesting period. 20% per year
My first job out of grad school was 12% of salary with no match required.
Working at a government contractor company and we get a flat 5% plus 50% match of our own contribution up to 8%. Not sure I said that completely correct but we put in 8% and get 9% match
My company matches 7.5%. Best I’ve seen personally
University employee. I get 9.24% on a forced 6% contribution.
Worked for the state. 1 yr = 10% match, 2 yr = 20% match all the way up to 50% on all contributions
My company does 10% of gross annually, irrespective of employee contribution. I didn’t fully appreciate it when I was a younger person. Definitely appreciate it now.
Employer maxing out the total allowable contribution (~$70k) with no employee contribution. This is most commonly seen for pilots of the major US airlines as a straight 17% employer contribution with no employee contribution needed. This is top tier. Everything else in the comments pales in comparison.
My company matches dollar for dollar up to 7%, then adds an additional 6% on top of that. So you put in 7%, they put in 13%. It’s bonkers good.
Buddy of mine gets a 200% match UP TO THE IRS LIMIT… he puts in 23k… company matches it with 46k. Never seen anything better than this.
Vanguard of all places matches 100% on up to 4% then throws in 10% of your salary without any strings at all.
So, if you make $100k there, you chip in just $4k and Vanguard adds another $14k for $18k total. Pretty awesome!
A lot of small employers with highly paid employees will do a 200% match as a way to compensate employees in a tax deferred manner.
A 200% match allows employees to get the full legal max amount in their 401k every year ($23k from you, $46k from your employer for a total of $69k, if you’re over 55 you can throw in another $7500 for $76.5K total).
I have a 403(b) but it’s… 8.9% of first 80k salary and 13.2% once you pass 80k up to 345k salary cap.
That is without me needing to contribute anything.
I put in 5% and my employer puts in 8%. So they also double my contribution, which is really nice.
I work in public service, but the city matches 2:1 7% of my salary. It is mandatory though.
Mine gives a 17% NEC to my 401k and a 1% blend of stocks and bonds in another holding. Pretty happy with it
1:1 match up to 6% is considered an across the board standard “good” match. Not “great”, not “best in the world”, but a good match.
I got a 100% match on the first 10% I contribute with no vesting period. I’ve never seen better.
Microsoft, Google, Facebook… All will do 50% of the employee contribution up to the IRS maximum.
So on 23K, that’s 11.5K.
I’ve seen some get 200% match, which is crazy.