Am I getting screwed by my company via 401(k)

[seanc85]

Im matched 50% up to 8, not too bad. It all goes into company stock in my 401k, which is really good right now.
Also i got 27 RSU's (unvested stock) on hire and 28 at 1 year which vest over the course of four years

 

[BurnItDwn]

my company doesn't have "401K" we have "profit sharing"

Vesting Period

Vesting is the period of time you must participate before your company matching contributions become 100% yours. The vesting period under the plan is six years. Each year, a greater percentage of prior, current and future company matching contributions, and related earnings, become yours to keep. After six years of employment with ********, all prior, current and future company contributions and their earnings are 100% yours. The vesting schedule is shown below.

Years of Employment / Percentage of Company Matching Contributions You Keep
2 /20%
3 / 40%
4 / 60%
5 / 80%
6 / 100%
Your contributions to the Plan (matched, unmatched and VIP) and all related earnings are always 100% yours.

That said, for the last few years, the company match has been greater than 3 to 1. (2% of salary going into the profit sharing plan)


I don't see why the amount of time it takes to be vested is a bad thing. It discourages turnover.
I've been with this company for 11 years. The first 5 years were in retail. The last 6 in IT. I plan on sticking with them for another 39 or so.

 

[Anubis]

i was fully vested after 90 days
they match 5%

 

[Don Vito Corleone]

Originally posted by: jamesave
yes. especially at small firms.

I work at a small law firm, and we can dedicate up to 15% of our income to 401(k), and have immediately-vested 5% matching. Pretty darn good deal IMO.

 

[Winchester]

Currently we dont vest until 10 years. No percentages per year up to 10. But it is a they match 2 to 1 and it is mandatory that we put in 7%. The vesting is hopefully fixing to change to 5 years starting in January, as well as 20 year retirement.

 

[pulse8]

Originally posted by: DonVito

Originally posted by: jamesave
yes. especially at small firms.

I work at a small law firm, and we can dedicate up to 15% of our income to 401(k), and have immediately-vested 5% matching. Pretty darn good deal IMO.

I work for Viacom and I'm not fully vested until 5 years.

 

[bennylong]

What kind of 401k plan and DBPP do GM workers have? They seem to have a pretty good deal, why are they always talking about going on strike?

 

[Yossarian]

Originally posted by: Winchester
Currently we dont vest until 10 years. No percentages per year up to 10. But it is a they match 2 to 1 and it is mandatory that we put in 7%. The vesting is hopefully fixing to change to 5 years starting in January, as well as 20 year retirement.

you can't be forced to invest in a 401k. you must have some other kind of plan, a ridiculous one from the sound of it. 10 years vesting haha

 

[ultimatebob]

I had to wait 5 years for my pension to become vested where I work, but the 401k is fully vested after a year.

 

[StageLeft]

Originally posted by: msparish
Vesting policy at my company:
20% after 2 years.
40% after 3 years.
60% after 4 years.
100% after 5 years.

Same mine i think.

 

[her209]

I'm 100% vested after 5 years of service. w00t!

 

[mattocs]

Originally posted by: TheNinja
My company matches 100% up to 6% and I'm fully vested right away. Sad part is, some people still don't contribute 6% b/c "they can't afford it". Ya, I hate it when I can't afford an instant 100% return on my investment.

When you live paycheck to paycheck, 6% is pretty hard to lose.

 

[Mday]

Mine is graded vesting over 5 years, 20% per year. After 5 years, I am fully vested.

Are you getting screwed, yes and no. There are those without pension plans. Compared to them, you're lucky.

There are those with defined benefit plans, compared to those, you're screwed.

How bad you are off depends on what they match, and what limits are. And what selections are have, as well as any fees the fund\account administrator takes.

Mine is matching up to 10%, i can go up to 15%. This means they match my contribution dollar for dollar, up to 10% of my salary. So in total, I can only get 25% in my 401k.

It's hard to find full and immediate vesting in industries with high turn over, or where there is no union in the US.

 

[FoBoT]

that is normal, "Vesting"

next time, RTFM

your poll sucks, get a clue

 

[Rage187]

err this is how its always been at each company I worked for.

Matching funds are vested 20% per year and fully vested at your 5th year.