this post was submitted on 27 Nov 2023
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Work Reform

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[–] [email protected] 4 points 1 year ago (1 children)

Oh I thought it meant they matched 100% up to 10% of your paycheck. That's how my work does it but only up to like 3% and then 50% for another 3%

[–] ChlorineAddict 2 points 1 year ago (1 children)

Say I have a 50% contribution match from my employer. For every $2 I contribute into my 401k my employer will add their own $1.

Some employers will force you to contribute a percentage of your paycheck towards your 401k, others will allow you to contribute up to a percentage of your paycheck, not all employers match though and not at the same rate. I believe my employer allows me to contribute up to 60% of my paycheck if I wanted (until the annual IRS limit is reached) but they will only match 50% of whatever dollar amount I send to the 401k account.

IRS will only let a person add $22,500 in 2023, which means if I max out my contribution my employer will add $11,250 for a total annual contribution of $33,750.

The IRS will only allow me and my employer combined to contribute $66,000 in 2023 to my 401k. I am unable to hit that $66,000 limit because my employer doesn’t match 293% of my contribution.

[–] [email protected] 2 points 1 year ago (1 children)

That's cool that it's uncapped for you. Lots of free money if you can make it work with your budget

[–] ChlorineAddict 1 points 1 year ago (1 children)

I got lucky in certain areas and I try not to forget that.

Either way if it’s a contribution match limit or a paycheck limit, it has a green check mark next to it, so it’s gotta be an improvement on where they were. I’m all for bringing everyone up and I’m happy for them.