Employer 401k Match

[Anonymous]

Another defense contractor. 6% paid in an annual lump sum in February.

[Anonymous]

Me – nonprofit. They contribute 5% of my salary no matter what I do and match another 5%.

Spouse – university. They normally match up to 10%, but have frozen contributions this year because of financial problems

[Anonymous]

Anonymous wrote:Another defense contractor. 6% paid in an annual lump sum in February.

wow! what if you leave job before that?

[Anonymous]

Pharma - 6% on everything, including bonus.

[Anonymous]

Anonymous wrote:Big tech - 50% up to the federal limit so I put in 24,500 and they put in 12,250. Big tech also supports the back door for after tax contributions so you can put in another 35k into Roth.

How again are they able to make $35K into Roth ? Isn't $8K the max contribution?

[Anonymous]

FIRREA agency: 8%

previous FIRREA agency: 5% match into TSP, and another 5% into a 401k. so one could in theory only put 5% into TSP and have the agency contribute a total of 10%, but I always maxed my contribution regardless.

[Anonymous]

Non profit. 15% of salary

[Anonymous]

Anonymous wrote:

Anonymous wrote:Big tech - 50% up to the federal limit so I put in 24,500 and they put in 12,250. Big tech also supports the back door for after tax contributions so you can put in another 35k into Roth.

How again are they able to make $35K into Roth ? Isn't $8K the max contribution?

Through the mega backdoor, https://www.bogleheads.org/wiki/Mega-backdoor_Roth

I put in 24.5 pre-tax. Employer puts in 12.25. I put in another 35.25 after-tax and immediately convert to Roth 401k to hit the total contribution limit of 72K.

I also do the regular backdoor for another 7.5K into Roth IRA.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Big tech - 50% up to the federal limit so I put in 24,500 and they put in 12,250. Big tech also supports the back door for after tax contributions so you can put in another 35k into Roth.

How again are they able to make $35K into Roth ? Isn't $8K the max contribution?

Through the mega backdoor, https://www.bogleheads.org/wiki/Mega-backdoor_Roth

I put in 24.5 pre-tax. Employer puts in 12.25. I put in another 35.25 after-tax and immediately convert to Roth 401k to hit the total contribution limit of 72K.

I also do the regular backdoor for another 7.5K into Roth IRA.

I assume you aren't taxed on the conversion of $35.25K as that is post-tax money. Are you taxed on gains associated with those contributions as part of the conversion to Roth 401k?

Do you convert annually, monthly, etc?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Big tech - 50% up to the federal limit so I put in 24,500 and they put in 12,250. Big tech also supports the back door for after tax contributions so you can put in another 35k into Roth.

How again are they able to make $35K into Roth ? Isn't $8K the max contribution?

Through the mega backdoor, https://www.bogleheads.org/wiki/Mega-backdoor_Roth

I put in 24.5 pre-tax. Employer puts in 12.25. I put in another 35.25 after-tax and immediately convert to Roth 401k to hit the total contribution limit of 72K.

I also do the regular backdoor for another 7.5K into Roth IRA.

I assume you aren't taxed on the conversion of $35.25K as that is post-tax money. Are you taxed on gains associated with those contributions as part of the conversion to Roth 401k?

Do you convert annually, monthly, etc?

Boggleheads explains this in section "Earnings on after-tax contributions".

There's no extra taxes, and no gains because my 401k provider does the conversion automatically (ex. Vanguard or Fidelity). Back in the old days I did it manually after every paycheck and did have to pay taxes on any gains made in the limbo period but that was usually only a few days. It wasn't really 26 times though because my bonus and salary hits the limit quickly in the first few months of the year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Big tech - 50% up to the federal limit so I put in 24,500 and they put in 12,250. Big tech also supports the back door for after tax contributions so you can put in another 35k into Roth.

Wow! Honestly I expected more from big tech. You mean like meta or Amazon or apple? I’m the one above with a pension and 10% base (no match necessary). We also do backdoor roth - but if you make enough the company tops up your annual contributions for you. I always thought big tech would be ahead of the other ‘big’ industries - where I am

Yeah the 401k match is good, but not amazing. I think meta offers 100% match on 50% of the limit so you don't need to contribute 24.5 to get the full match. One perk is you can max at any time (ex. Early in the year with a bonus or late in the year by cranking up contributions to 100% of your pay). Before true-ups were common that meant you had more flexibility than salary match.

Lots of details on levels FYI, https://www.levels.fyi/blog/ranking-faang-401k-plans.html

The moderate 401k match is offset by the generally much higher compensation, access to the backdoor, quick or immediate vest, and available funds being negotiated to very low rates (even auto managed target funds are 0.03%).

[Anonymous]

Anonymous wrote:FIRREA agency: 8%

previous FIRREA agency: 5% match into TSP, and another 5% into a 401k. so one could in theory only put 5% into TSP and have the agency contribute a total of 10%, but I always maxed my contribution regardless.

Is your salary higher at the Fed vs your old job at FDIC?

The pension is better at the Fed, no contributions.

[Anonymous]

Tech start up

100% match on first 4%, 50% match on 2%

[Anonymous]

Nonprofit- I contribute 6%, they match it 100%, and they contribute another 6% on top.

[Anonymous]

No match. 21% employer contribution.