1) If your employer offers a 401k, do you participate?
2) What's the max % your employer matches?
3) What was your 401k's performance last quarter?

My answers:
1) Yes of course, otherwise you are turning away free money.
2) 6%
3) -3.21%

1) Yes
2) 5%
3) + 1.8%

I made the mistake of investing 20% into S&P 500.

I lost on 5 of my funds, but Dodge & Cox did very well, so I came out slightly ahead.

1. yes
2. first 2% match 100%
second 3% are matched 50%, only if that quarter is profitable
3. Haven't check yet

if there is matching contribution, one has to really put the money in 401k.
It's free money!

if there is matching contribution, one has to really put the money in 401k.
It's free money!
Yep. Even without match there is still a tax benefit to investing in your 401k.

if there is matching contribution, one has to really put the money in 401k.
It's free money!

Definitely. I set mine to match whatever my employer's matching contribution. I'm hoping since I'm only 25 that this will one good way to save for retirement, since I'm not counting on seeing any social security.

we don't have one. that makes me a sad panda.

my old employer did but he didn't match.

When I worked, yes one was offered, I contributed 5% and the employer matched 5%. When I left the job I cashed it out as I needed the money to go back to school and finish my degree. I figured that my earnings with a degree would be better for me in the long run than keeping the money in the 401k and not getting a degree and earning less over the course of my life.

Dh is military and they do not have a 401k. They have the Thrift Savings Plan which we do not currently contribute to...we are barely making ends meet right now. But there is no matching or anything so we aren't missing out on anything by not contributing.

don't they have pension from the government?

Just curious..

we don't have one. that makes me a sad panda.

my old employer did but he didn't match.

in that case, you should put into Roth IRA-

don't they have pension from the government?

Just curious..

If you stay in the military for 20 years, yes, you get retirement pay after you retire. You also get retiree health insurance. It's very nice--stay with the military for 20 years, then go get a civilian job and still have military retiree benefits as well as from your current employer.

But for those who leave the military before that 20 year mark, there is still the Thrift Savings Plan. It works more or less like a 401k but there is no matching or anything. I don't know the exact details on how it works, but it's money for retirement and if you leave the military after just a few years, you get to keep that money in a retirement account...rather than not getting any retirement money at all because you didn't stay in for 20 years.

Does your husband plan to be in the military for 20 years?

but then again I am not familiar with the Thrif Savings Plan..

Does your husband plan to be in the military for 20 years?

but then again I am not familiar with the Thrif Savings Plan..

LOL, no, he wants out as soon as he can get out. He hates the Army. He would never be in it for 20 years. He's going to switch to Coast Guard whenever the Army decides to let him out, but he'll only sign up for 2 yrs with them in case he doesn't like it. I don't think he'll do the whole 20 years. It's a possibility but probably not a big one.

I'm not familiar with the Thrift Savings Plan either though. I know it exists and I know we don't contribute because we need every penny of his pay right now...but at some point we do need to start saving up for retirement. Thankfully we have many years ahead of us to hopefully start earning more money and putting it aside.

in that case, you should put into Roth IRA-

i never actually started that account with him.

my bf says that since i don't have a 401k i should do Roth IRA instead. (or well in addition whenever i finally work somewhere with a 401k or if we actually start one.)

woo!

we're starting a 401k, info meeting in 2 weeks! i hope they give us some info before then!

outnumbered, is your husband enlisted or an officer? Does he have to stay in the same branch for 20 years to get the retirement benefits, or can he switch it up?

My employer offers 403b (401k for non-profits), but I'm not eligible because I'm considered a temp. When I hit the 1 year mark they have to offer me benefits, and I'm sure they'll also offer me a nice pay cut as well. Oh well.

outnumbered, is your husband enlisted or an officer? Does he have to stay in the same branch for 20 years to get the retirement benefits, or can he switch it up?

He's enlisted. It can be any branch, too. Assuming he does still switch to Coast Guard, as we've planned, when he gets out of the Army (someday...ugh), his time in the Army will count towards retirement and he'll only have to spend 16 (make that 15 or 14) years in the Coast Guard to retire after 20 years combined service. He'll hit the 4-year mark this August. Would have gotten out then but he's going to get put under stop-loss and so I don't know when we'll actually get out of here. It all depends on if he has to be there for the entire deployment or if they lift the stop-loss at some point and let guys come home to get out.

1) If your employer offers a 401k, do you participate?
2) What's the max % your employer matches?
3) What was your 401k's performance last quarter?



1) yes
2) 6%
3) -3.66% for the year (which i dont mind since i had about +37.05% for last year)

1. Yes.
2. 6% too.
3. I don't know.

It's interesting that 6% employer match seems to be the norm.

It's interesting that 6% employer match seems to be the norm.

Seems like it... I wonder why not 10% or 5%?

I'm betting that 5% used to be standard, and some companies upped their matching a percentage point, and more followed, etc.

Seems like it... I wonder why not 10% or 5%?
10% would be nice and it means less taxable income for us working stiffs.

10% would be nice and it means less taxable income for us working stiffs.

Yep, I'd be all over that.

6% ... .*salivates*

i hope to get the prospectus before the meeting so at least i can go over it before so i can be armed with questions.

6% ... .*salivates*

i hope to get the prospectus before the meeting so at least i can go over it before so i can be armed with questions.
I'm not sure if 6% is worth salivating over but nothing beats FREE MONEY :)

/me resumes salivating :gd_dollar

Ok... Don't hurt me.

1) Yes... He** yes
2) 5%
3) I don't know my last quarter, but my average return for 2004 was 13.28% based on how I distributed my funds.

the TSP is the best thing that I have ever done financially. If your employer matches, you are silly not to put at least the amount they will match in.

I have maxed mine out for 2.5 years now and it is already up to a significant amount.

Since I started out a bit late, I have taken risks. 50% of my contribution goes to fairly agressive funds. However, with that risk comes returns. My most aggressive fund averaged 20% return for 2004.

Does your husband plan to be in the military for 20 years?

but then again I am not familiar with the Thrif Savings Plan..

The TSP which is what I'm using is great for civilian military employees. It is only good for active duty.

If you are active duty, you don't get the 5% match, but you do get to contribute to the same TSP funds. My wife, who is active duty participates to the maximum as well, but because of the funds match, mine grows much faster.

1) yes
2) you're gonna hate me for this one... 8%
3) -1% for the last quarter (+80% if you include the 8% match on my 10% contribution); 15+% for the last year...

1) yes
2) you're gonna hate me for this one... 8%
3) -1% for the last quarter (+80% if you include the 8% match on my 10% contribution); 15+% for the last year...
2) You're right, I do hate you :)

1) If your employer offers a 401k, do you participate?
2) What's the max % your employer matches?
3) What was your 401k's performance last quarter?

Well, since I work for a small financial company that has recently turned into one of the largest debt collection companies in about a year and a half, we've recently had the pleasure of creating a 401K program. I don't really understand the whole shinanginz but this is how they explained it to me. It doesn't start until June or July however.

1.) I will be when it starts.
2.) Basically, we can put in x% that we want. The company will then take 2% of the yearly profits and divide it up amongst the employee's and put that in the 401k.

Now that's how the CFO was explaining it to me. I don't really know how much it'd end up being for me, but from one the guys who previously worked at MBNA he said this program in theory is considerbly better than what MBNA had.

My employer (not sure if all are like this) does not offer it until you're 21 :(

My employer (not sure if all are like this) does not offer it until you're 21 :(

That doesn't make sense...is that even legal? I would think that's age discrimination. I had 401k eligibility (and employer matching) when I started my first "real" (as in non-high-school) job when I was 19.

Debbie

My employer (not sure if all are like this) does not offer it until you're 21 :(

usually most don't offer until you've worked there an x amount of time, not based on age.

I remember reading it on a pamphlet that we had in office. I work for Walgreens. I tried looking it up on our site and doesn't say anything about being 21 but I remember reading it. I've been with them for 3 years so I would be led to believe that is ample time for eligibility. I'll have to look into it again and ask.

so we had our meeting:

match: 4%.
eligible: after 3 months.
vested after: 2 years, you'll be 20% vested, fully vested after six.

needless to say, i'll be joining. i hope i can make it that long.

Started investing in my company's 401k as soon as I was eligible. I put in 5% of which the company puts in 4% of my base salary. Additionally I put 10% into stock purchase which the company puts in 50% or 5% of my base salary towards my 401k. Also receive stock options.

Currently up 1% in my 401k and 8% in stock value.

minendo, how long until you are fully 100% vested in your 401k?

Most companies require 3, 5, or 7 years employment before becoming "vested" 100%.

minendo, how long until you are fully 100% vested in your 401k?

Most companies require 3, 5, or 7 years employment before becoming "vested" 100%.


I thought those are usually for small companies.

Mine is 100% vested right away. My wife's company on the other hand, requires 5..

My employer (not sure if all are like this) does not offer it until you're 21 :(

As mentioned by outnumbered, this isn't legal. It's out and out age discrimination and it's the kind of thing that would make the IRS disqualify the entire plan.

I'd say it's more likely that the plan has a requirement of you being an employee for a certain amount of time before you're eligible. If I were you, I'd look into it. If you're wrong about how it's setup, maybe you can get correct info and start contributing (I'd love to go back and start contributing to a 401k before I hit 21!!!). If, otoh, you're right, I'd start shaking some trees - this is a huge deal...

Incidentally, some people mentioned vesting. By law, a company can use whatever "vesting schedule" they'd like, with one caveat: all employees have to be 100% vested after no more than 7 "tax years" of employment.

Update: I looked into it. It is you have to have more than 1000 hours of work-time within a one year period (which I have) AND you must be 21 years of age or older. I read it and re-read it to make sure I read it correctly, and I did. It clearly states you have to be 21+ years of age.

I fired off an email to corporate office asking what the deal is, will take a few days to get a response.

Update: I looked into it. It is you have to have more than 1000 hours of work-time within a one year period (which I have) AND you must be 21 years of age or older. I read it and re-read it to make sure I read it correctly, and I did. It clearly states you have to be 21+ years of age.

I fired off an email to corporate office asking what the deal is, will take a few days to get a response.

I hope it works out for you. The longer you have money in the 401k, the better for you when you retire. However, their policy is perfectly legal, and does make financial sense for the company. They're most likely reasoning is that a 16-20 year old is still in school, and will most likely last less than 2 years at the company. It would not be wise for them to match your 401k contribution if they feel that you will just be taking it with you in a short time.

I hope it works out for you. The longer you have money in the 401k, the better for you when you retire. However, their policy is perfectly legal, and does make financial sense for the company. They're most likely reasoning is that a 16-20 year old is still in school, and will most likely last less than 2 years at the company. It would not be wise for them to match your 401k contribution if they feel that you will just be taking it with you in a short time.

Which is exactly why companies have a vesting schedule... typically if you leave within 2 years, you get to keep 40% or less of the match they've contributed... Any forfeited match typically goes back to the fund, potentially to be divided up among everybody else in the plan...

Update: I looked into it. It is you have to have more than 1000 hours of work-time within a one year period (which I have) AND you must be 21 years of age or older. I read it and re-read it to make sure I read it correctly, and I did. It clearly states you have to be 21+ years of age.

I fired off an email to corporate office asking what the deal is, will take a few days to get a response.

Just outta curiousity, did they ever come back with an explanation of how they get away with this age discrimination?

Just outta curiousity, did they ever come back with an explanation of how they get away with this age discrimination?After 2 weeks of waiting, I sent them another email repeating the question and saying to please answer because my first one was never answered. The training supervisor (the person who receives it before it goes to corporate) called me at work like 5 minutes after I sent the second one.

She started yelling at me and saying how I was being rude and unprofessional with my tone and she was reading my message to me. She said she never received my first email. I told her that I apologize if I came off rude but I didn't intend my "tone" (however that's possible to have through an email) to be that way. After apologizing, she kept repeating what I wrote.

She briefly said something about a law, said she'll send it to corporate for the answer but that she's unable to change what I wrote in the email. I told her that is fine and she hung up on me.

I really haven't had the motivation to even check to see if they emailed me back, it just left me with a sour taste in my mouth.