401k question: what is my employer matching?

[Dear Summer]

if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $2000, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

 

[newb111]

Originally posted by: Dear Summer
if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $20, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

They match 50% of up to 6% of your salary. This means they match the first $600 you put in with $300.

 

[Engineer]

Originally posted by: Dear Summer
if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $20, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

.03 * 10,000

 

[iamwiz82]

Originally posted by: Dear Summer
if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $20, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

...

:: Face palm ::

They match 50% of your contribution, up to 6% of your salary...

 

[Dear Summer]

Originally posted by: iamwiz82

Originally posted by: Dear Summer
if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $20, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

...

:: Face palm ::

They match 50% of your contribution, up to 6% of your salary...

what's the mathematical eqn for it to make it simpler?

is what engineer posted correct?

if my salary is 90,000 and my contribution amount is 20%, 90000*.03 = ?

 

[newb111]

Originally posted by: Dear Summer

Originally posted by: iamwiz82

Originally posted by: Dear Summer
if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $20, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

...

:: Face palm ::

They match 50% of your contribution, up to 6% of your salary...

what's the mathematical eqn for it to make it simpler?

is what engineer posted correct?

if my salary is 90,000 and my contribution amount is 20%, 90000*.03 = ?

His equation is correct as long as you contribute more than 6% of your salary. If you contribute less, the match is 50% of your contribution.

EDIT: Also keep in mind that the maximum contribution to your 401k for 2009 is $16,500 (if you're under 50). 20% of 90k would be more than that.

 

[Dear Summer]

Originally posted by: newb111

Originally posted by: Dear Summer

Originally posted by: iamwiz82

Originally posted by: Dear Summer
if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $20, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

...

:: Face palm ::

They match 50% of your contribution, up to 6% of your salary...

what's the mathematical eqn for it to make it simpler?

is what engineer posted correct?

if my salary is 90,000 and my contribution amount is 20%, 90000*.03 = ?

His equation is correct as long as you contribute more than 6% of your salary. If you contribute less, the match is 50% of your contribution.

k it makes sense, thanks guys!

 

[smack Down]

Originally posted by: Dear Summer

Originally posted by: iamwiz82

Originally posted by: Dear Summer
if my company matches 50% up to 6%, how much is dollar amount?

if my salary is $10000, and I put in 20% per year = $2000

so using $20, is the company matching ($2000 * .06)/2? = $60 per year?

what a BS!

...

:: Face palm ::

They match 50% of your contribution, up to 6% of your salary...

what's the mathematical eqn for it to make it simpler?

is what engineer posted correct?

if my salary is 90,000 and my contribution amount is 20%, 90000*.03 = ?

The equation is the min(.5 * your contribution, .06 * your salary).

Note the equation is applied per pay per period.