Question about company matching -- 401K plan

[Anonymous]

My Salary is $65K per year.

I recently found out that my company has made changes to our 401K plan.

My company will contribute up to 100% match for up to 3% of my income. The company will then contribute 50% match for up to the remaining 2%.

Im bad at math...can you help me with these calculations please? How much should I contribute monthly/annually so that I can be sure to max our my retirement savings every year.

Also, is my company's match good? How much does your company match?

[Anonymous]

If you are under 50, you can contribute up to $17,500 a year (2013 tax year limit). If you are over 50, you can contribute an additional $5,500 (2013 tax year limit), for a total of $23,000 a year.

You will max your match if you contribute 5% of your income ($3250) a year. The match amount is $2600.

If you are 50+ and saved the max, your total yearly savings would be $25,600. This will grow tax free until you take it out. You can take it out without penalty starting at age 59 1/2.

You will have to select investment options in your plan. If they have a target-date fund (likely named "2045 Fund" or similar), I suggest investing there.

[Anonymous]

Anonymous wrote:My Salary is $65K per year.

I recently found out that my company has made changes to our 401K plan.

My company will contribute up to 100% match for up to 3% of my income. The company will then contribute 50% match for up to the remaining 2%.

Im bad at math...can you help me with these calculations please? How much should I contribute monthly/annually so that I can be sure to max our my retirement savings every year.

Also, is my company's match good? How much does your company match?

5% for company max..

[Anonymous]

We get a 50% match from the company on the first 3% of our contributions. Better than nothing.

[Anonymous]

If you are under 50, you can contribute up to $17,500 a year (2013 tax year limit).

Question: does that $17,500 include the match? So for example, if I contribute $17k a year and my employer matches with a contribution of $3k, is that allowed?

[Anonymous]

Anonymous wrote:If you are under 50, you can contribute up to $17,500 a year (2013 tax year limit).

Question: does that $17,500 include the match? So for example, if I contribute $17k a year and my employer matches with a contribution of $3k, is that allowed?

No, it doesn't include the match. I can contribute 17500 each year even though my employer matches some of it.

[Anonymous]

no the match isn't included. I put in 17500 and my company matches that 1:1

[Anonymous]

Anonymous wrote:no the match isn't included. I put in 17500 and my company matches that 1:1

what company is this? I need to change employers!

[Anonymous]

Anonymous wrote:

Anonymous wrote:no the match isn't included. I put in 17500 and my company matches that 1:1

what company is this? I need to change employers!

I should say they match 7.5% of pay, for me it works out to be about 1:1