What % of your salary do you contribute to a 401k?

[lothar]

If anybody is giving a matching value that is anything other than the total amount of their salary that their employer provides, they are an idiot.

For example, I get matched 100% on the first 4%, and then 50% on the next 4% - I tell people that I get 6% matching - because that's what it is.

4 years ago before I graduated, I was told by one of the recruiters for Company XYZ at a career fair that said "Don't waste your time, Company ABC only offers 2% matching, our company here XYZ offer 5% matching"
Luckily I was already working for Company ABC a year prior so I already knew the matching details.

There are a lot of idiots out there who will simply just pick whichever company offers them the higher percentages without asking for matching details to do their own calculations.
I wouldn't really call those recruiters idiots...They are smart.
As the saying goes, "The devil is in the details."

 

[JimmiG]

I think we have something similar to that here but I don't use it. When I grow old I'll either have to keep working, trust that the government will take care of me, or commit suicide.

 

[vi edit]

Some are required to, to keep the plan. If there is more than 60% of plan assets by key employees the IRS will make them shut down the plan. That is why some companies offer huge benefits to contributing so that senior management can keep contributing...it's either try to get more money from contributions or contribute 3% of payroll. Generally cost/benefit is to get more contributions from non-key employees.

Yeh my wife and some of her coworkers have gotten bitten by the "tests" that her employer does. They are considered "high income earners" because they are pharmacists. If enough lower paid people aren't contributing then they "fail" the tests. If they had maxed out their 401k's at the 16k they were forced to refund back $3000 or $4000 and pay back the taxes on to bring that ratio into proper scale. I think it's absolute bullshit and for the life of me can not figure out who it benefits.

 

[FelixDeCat]

We're not making it to 2013 so its 0% for me.

 

[dr150]

The maximum allowed. Whatever percentage that works out to

This

 

[JS80]

I believe you have seen nothing yet. I was reading this summer about plans to STEAL 401k's and IRA's as govt finds itself too much in the hole. This is not withstanding if you're money is actually there as MF globals accounts are finding out. Are we all going to get Maddoffed?

Then assuming everything is cool the value themselves IS complete crap. I "retired" from working in 2001 and had $44K in a 401K still have the same thing 10 years later and never touched it. That's a loss.

Since I've been self employed I've done the max IRA every year but at least I can direct that but again who knows if those funds will be there.

Situation we are headed into possession will be 9/10th of the law. I keep wealth local and accessible.

If that happens I guarantee you the US military will point the guns towards the politicians that try to loot the funds.

 

[rcpratt]

4 years ago before I graduated, I was told by one of the recruiters for Company ABC at a career fair that said "Don't waste your time, Company ABC only offers 2% matching, our company here XYZ offer 5% matching"
Luckily I was already working for Company ABC a year prior so I already knew the matching details.

There are a lot of idiots out there who will simply just pick whichever company offers them the higher percentages without asking for matching details to do their own calculations.
I wouldn't really call those recruiters idiots...They are smart.
As the saying goes, "The devil is in the details."

I didn't really mean recruiters or HR folks, I meant people quoting what matching they get here. I agree that the onus is on the employee to figure out what they're getting. Personally, I prefer plans that encourage you to put in more (6-10%) to receive the full match, because 90% of this country is mentally deficient and needs all the help they can get to encourage them to save more.

 

[Sho'Nuff]

Really depends on the year for me. More if I make less, less if I make more. Usually its about 9% so that I max it out in late november. The extra cash is nice for Christmas shopping.

 

[Jeff7]

Wow you're insane! Congratulations!

Companies will willingly steal from worker pension accounts, or simply stop funding them, if they feel that they need a bit more money, and if they think they can easily get away with it. At this point, I wouldn't be surprised if yet another corrupt organization, like the US government, goes for another money grab, legal or not.

 

[arcenite]

0%. I just bought a house and need every dollar I can get.

I will likely start re-contributing starting tax season next year.

 

[Fritzo]

Companies will willingly steal from worker pension accounts, or simply stop funding them, if they feel that they need a bit more money, and if they think they can easily get away with it. At this point, I wouldn't be surprised if yet another corrupt organization, like the US government, goes for another money grab, legal or not.

So you make up these situations that have a minimal chance of occurring in your head, disregard the most likely outcome, and then act on it.

Seems perfectly same to me.

 

[IEC]

The maximum allowed. Whatever percentage that works out to

This.

 

[maraba]

If you are maxing 401k @ 16,500 before tax and maxing Roth IRA which is 5000 after tax or 6000 before tax that is 22,500 / .2 or approximately $112,500. Watch out because you are dangerously close to the Roth IRA contribution limits 2012 or $107,000 assuming you're a single filer.

I would love to make a Roth IRA contribution...

I think 4% match from the company is included the percentage.

 

[Spacehead]

It was at 10%. My company just dropped it ending in September due to there were only 2 of us contributing to it.
There was never any match, it was a profit sharing plan. Since they usually never made a profit they've hardly ever put any money in.

I just rolled my 401K into my IRA that i had & am going to keep putting the 10% into that.

I just opened a Roth IRA yesterday & am going to max that out this year.

 

[Jeff7]

So you make up these situations that have a minimal chance of occurring in your head, disregard the most likely outcome, and then act on it.

Seems perfectly same to me.

Yes, in my head. Except that this idea seems to have worked its way into my head, courtesy of reality.
Companies are certainly curtailing and eliminating pension plans as a way of saving money. Though usually, executive persons receive no cuts to their lavish compensation packages; god help us if they'd have to live paycheck-to-paycheck. It's just the lowly peasant wage-earners who are the source of the funding problem. (And some companies have stolen from their workers' 401k accounts. Fortunately, this doesn't appear to be common. Hopefully it stays that way.)
I'll have to let you know once I've read this.

Let's just say, I don't trust the oligarchy.


Late edit: Fraud and your 401k.

 

[ModerateRepZero]

I'd have to check, but for the TSP (Thrift Savings Plan, federal govt. equivalent of a 401K), I think I get up to 5% matching, with the last 1% matching on on a 2 for 1 basis. That means I need a minimum of 6% to get the full matching contribution, which is my current contribution.

 

[HybridSquirrel]

10%, but my employer doesn't match it so I am thinking of dropping that to 5% until I max out my Roth IRA.

 

[spacejamz]

IMO, it just a matter time before the government figures out to tap this gold mine and screw it up for those who contribute and give it away to those who don't...

I do 6% plus 6% company match for now...

 

[H54]

I do 15% which is the max. If I could do more, I would.

 

[iGas]

17.62% to retirement (down 1.96%), 15.39% to stock (down 15.14%).

 

[Engineer]

10%, but my employer doesn't match it so I am thinking of dropping that to 5% until I max out my Roth IRA.

That way, when the government finally gets that sales tax in place, your (and my) butt will be burned with our newly taxed Roth money.... :hmm:

 

[HybridSquirrel]

That way, when the government finally gets that sales tax in place, your (and my) butt will be burned with our newly taxed Roth money.... :hmm:

you think they are going to start taxing Roth IRAs? that would cause more outrage than occupy wall street...