do you count 401k matches, etc. as part of % you are contributing from salary towards retirement

[Anonymous]

My husband puts in $9,700 a year of his salary ($97,000) towards retirement
His company matches him $9,700 (or 10% of whatever his salary is)

I contribute $17,500 of my salary ($92,000) towards retirement
However, my company automatically takes 7% of my salary ($6,440) and puts it towards a defined benefit
plan that I won't receive until 20 years from now.

What percent of our $189,000 salary our we contributing...when the experts tell you to contribute at least 15% of your salary, and more if you can.
Option 1 : $9,700+$17,500= 14%
Option 2 : $9,700+$9,700+$17,500= 19.5%
Option 3 : $9,700+$9,700+$17,500+$6,440= 22.9%

[Anonymous]

Employer contribution counts.

[Anonymous]

Does employer contribution count for the &17,500 max?

[Anonymous]

Anonymous wrote:Does employer contribution count for the &17,500 max?

no

[Anonymous]

I vote option 3, but I don't know about that 15 percent figure. It will depend on a variety of factors, include what age you start saving and what age you plan to retire, not to mention whether you have a defined benefit component.

[Anonymous]

Option one. I don't count the employer match. We both max out our 401ks. My employers matches 1-1, I don't count that extra~ 17k they match. What if you leave that company and new company doesn't match. Get used to living on lower income if you can.

[Anonymous]

I don't count it b/c to me it's a mind trick to save more...silly I know.

[Anonymous]

As long as the match is 100% vested (or pretty close in time to being so), I'd count it.

[Anonymous]

What are the chances you won't receive the defined benefit?

[Anonymous]

I don't count it because I may want to ,ove on before vesting.

[Anonymous]

Anonymous wrote:As long as the match is 100% vested (or pretty close in time to being so), I'd count it.

+1

[Anonymous]

I don't count it. If your employer started contributing more or less would you contribute less or more to balance it out? I wouldn't. So it doesn't matter.

[Anonymous]

Anonymous wrote:I don't count it. If your employer started contributing more or less would you contribute less or more to balance it out? I wouldn't. So it doesn't matter.

I would.

[Anonymous]

It is vested so why not count it? A better question might be how close you are to 8x salary or whatever is recommended for retirement.

[Anonymous]

Once the employer's contribution is made, that money is not separate from yours in any way. Therefore, I include it, but I also max out my contribution. It is a way to go beyond the arbitrary contribution limit.