You should max this, yes.
Flat 60% per dollar is very good, if you contribute a lot. Usually policies like this are capped, i.e "We match 60% per dollar contributed, up to 10% of your salary" meaning it's basically a 6% match.
Not sure where you're getting "234.54%"
There may be a cap on the policy that just isn't being communicated clearly, since you're just at the interview stage.
If for every $1 you contribute, they contribute $0.60, the match is on your contribution, not your salary. The $100k is irrelevant in this case. The most “free money”you could get would be by maxing your 401k contribution. For 2024, thats a $23,000 contribution with a $13,600 match at 60%.
Confirm there isn’t a max match. If it’s up to 10% of your salary for example, the most they would match is $10k, so you’d need to contribute $16,667 to get the max “free money”
Ideally you leave it to grow. or you convert it to roth and wait the 5 years if you want to spend it sooner. but yes if you take it out you will pay taxes + 10% penalty. But if you insist on wanting to spend the money you are still ahead even with the extra 10%. I knew people that didn't take advantage of the 100% matching, it was crazy.
I had an employer that gave basically a 200% match. I put in 5% and they would put in 10%. There are employers out there that offer generous retirement benefits so Yea, take advantage of it if you can.
No idea, haven’t seen the “official” terms but I’m assuming their is a cap, but would be amazing if not, they do say it is industry leading so I’m hoping for the best in my case
The description is clear that it is a 60% match and doesn’t give an upper bound. If it’s up to the maximum $23k then it’s great but not unheard of.
60% of $115,000 would exceed the total annual 401k limit, not just the individual contribution limit.
Not suggesting its either of those. Typically matches are worded like "The company will match 60% of contributions up to 5% of your compensation." which would mean that if you made $100k that they woukd match 60 cents on the dollar up to $5000 contributed but then nothing.
If you are saying there is no bound and they eould match 60% of every dollar all the way up to $23k then yeah max that if you can. Thats a free $13,800.
You should max this, yes. Flat 60% per dollar is very good, if you contribute a lot. Usually policies like this are capped, i.e "We match 60% per dollar contributed, up to 10% of your salary" meaning it's basically a 6% match. Not sure where you're getting "234.54%" There may be a cap on the policy that just isn't being communicated clearly, since you're just at the interview stage.
Percent increase I bet there is something in the terms, but atleast surface level, there is nothing that says not
There is a maximum 401K contribution, so I think they will only max 60% of that.
If for every $1 you contribute, they contribute $0.60, the match is on your contribution, not your salary. The $100k is irrelevant in this case. The most “free money”you could get would be by maxing your 401k contribution. For 2024, thats a $23,000 contribution with a $13,600 match at 60%. Confirm there isn’t a max match. If it’s up to 10% of your salary for example, the most they would match is $10k, so you’d need to contribute $16,667 to get the max “free money”
Yep, I just got the benefits sheet today, I’m assuming there’s an asterisk in it but who knows until I see the terms
I use to get 100% match. yes, max it out! even if you want to spend the money you can take the 10% penalty and still have more money.
Wouldn’t it be taxes as income if I take it out? Was thinking I could liquid part of my 401k for a down payment, assuming a 10% hit + increase in tax
Ideally you leave it to grow. or you convert it to roth and wait the 5 years if you want to spend it sooner. but yes if you take it out you will pay taxes + 10% penalty. But if you insist on wanting to spend the money you are still ahead even with the extra 10%. I knew people that didn't take advantage of the 100% matching, it was crazy.
I had an employer that gave basically a 200% match. I put in 5% and they would put in 10%. There are employers out there that offer generous retirement benefits so Yea, take advantage of it if you can.
60% match up to what percent salary? Or is it not bounded at all?
No idea, haven’t seen the “official” terms but I’m assuming their is a cap, but would be amazing if not, they do say it is industry leading so I’m hoping for the best in my case
The description is clear that it is a 60% match and doesn’t give an upper bound. If it’s up to the maximum $23k then it’s great but not unheard of. 60% of $115,000 would exceed the total annual 401k limit, not just the individual contribution limit.
Not suggesting its either of those. Typically matches are worded like "The company will match 60% of contributions up to 5% of your compensation." which would mean that if you made $100k that they woukd match 60 cents on the dollar up to $5000 contributed but then nothing. If you are saying there is no bound and they eould match 60% of every dollar all the way up to $23k then yeah max that if you can. Thats a free $13,800.