What are YOU doing with your 401(k) right now?

[billyhoyle]

17 hours ago, bnwtwg said:

Let me try to clarify my scenario: I am a senior leader that can either move up or move out depending on the political winds that month. I would rather max immediately and lock into the match than risk chipping a little every two weeks. For me, it is risking leaving free retirement money on the table so yes it is long vs short.

I am fortunate to have the ability to max out my contributions early when many people are doing their best to pay for braces and save enough for nice clothes for their kids and I do not lose sight of that. Ever.

That's great.  But if you max out your contribution and your company doesn't "true-up" until the end of the year, and then you leave your company, you won't get the matching contribution from them. 

[bnwtwg]

30 minutes ago, billyhoyle said:

That's great.  But if you max out your contribution and your company doesn't "true-up" until the end of the year, and then you leave your company, you won't get the matching contribution from them. 

A threshold exists where exits migrate from dictated to negotiated.

[billyhoyle]

4 hours ago, bnwtwg said:

A threshold exists where exits migrate from dictated to negotiated.

Your company isn't going to change how run their 401K match based on you trying to negotiate. I don't think you have any clue what you are talking about with this stuff. 

[Caveira]

34 minutes ago, billyhoyle said:

Your company isn't going to change how run their 401K match based on you trying to negotiate. I don't think you have any clue what you are talking about with this stuff. 

At certain levels of companies they get to negotiate just about anything.  

[billyhoyle]

17 hours ago, Caveira said:

At certain levels of companies they get to negotiate just about anything.  

The rules of the 401K have to be the same for all employees. 

Edited Thursday at 02:05 PM by billyhoyle

[JimmySpeaks]

In many companies the further you go up there are more and better options than just a 401k. 

[Caveira]

41 minutes ago, billyhoyle said:

The rules of the 401K have to be the same for all employees. 

Not arguing…   Maybe not same situation ?

https://www.hunton.com/insights/legal/executives-may-be-eligible-to-receive-larger-401-k-plan-benefits-with-a-new-comparability-formula

 

ai answer 

While it's difficult to make a blanket statement, executives in tech companies may have access to 401(k) plans that are more generous than those of non-executives, potentially including higher employer contributions or broader investment options. 

 

Here's a more detailed explanation: 

 

• Higher Contributions:

  Some tech companies offer generous employer matching programs, potentially matching a larger percentage of employee contributions or contributing a fixed amount, which can significantly boost retirement savings for executives. 
• Broader Investment Options:

  Executives may have access to a wider range of investment options within their 401(k) plan, including specialized funds or even access to company stock options, allowing for potentially higher returns. 
• Negotiated Benefits:

  Executive compensation packages are often negotiated, and retirement benefits, including 401(k) plans, can be a part of those negotiations, potentially leading to more favorable terms. 
• Focus on attracting and retaining talent:

  Tech companies often compete for top talent, and offering attractive retirement benefits, including 401(k) plans, can be a key part of their strategy for attracting and retaining executives.

Edited Thursday at 02:45 PM by Caveira

[Le duke]

So, they have to provide the same benefit to everyone, but, because a high earner can contribute more, they get a higher match.

Just tossing out numbers here:

A company provides a 200% match.

A person making 250K tosses in their 23,500, gets 47,000 from the company.

Their employee making 100,000 can't do that in many cases, but puts in 8% of their pre-tax salary, and gets 16,000. 

Make 2.5x but receive a 3x benefit because they can afford the loss of pre-tax income.

It pays to be rich-ish.