Retirement...contract talks

[realbrown1]

I barely broke $70K last year.

Yes, I am FT at top rate.

No, I don't take dead days.

That's what you'd make as a top rate driver working a lot of 8 hour days.

 

[Mugarolla]

This is true but somewhat misleading.

You have to contribute at least 6% to get the full company match, which is a dollar for dollar match.

I didn't mean for it to be misleading. You are correct.

If you only contribute 4% the company will only match that 4%

Based on that $100K gross, this means you would contribute $4000 and the company would contribute $4000.

If you contribute anything over 6% the company will only contribute 6% assuming a match up to 6%

It would be best to contribute at least up to the max that the company matches, or you are leaving free money on the table.

 

[twoweeled]

Maybe you should go back to teaching 4th graders and leave the more complicated math, and 401K investing, to the big boys.

The amount of money that your employer contributes to your 401K is not a percentage of the amount you contribute. It is a percentage of your gross wages.

You say that if you max your contributions to $18000 for the year, that the employer contribution will be 6% of $18000. Incorrect. It is 6% of your gross wages.

I'll keep math simple for you 4th graders.

An employee grosses $100K. In order to max his 401K, he contributes 18%

This gives him $18K contributed to his 401K. So what is the employers contribution, assuming a matching contribution up to 6%

This is 2nd grade math. It would be 6% (max) of $100K, or $6000.

So the total 401K contribution for this year would be $24K.

And yes, the max is $18K for your portion. With the employers matching contributions, you can go over that $18K limit.

1. Maybe you should go back to summer school yourself.

Of course contributions are based on gross wages. Where do I say it's based on net earnings? Of course it's based on gross. duhh.
2. If you are able to exceed the $18,000 max into your 401k contributions, than I am wrong. I am not aware of that. I am basing it on $18,000 max 401 K contributions.
3. The rest of what you say, is totally wrong. you'd better sign up for my class too. but make it 1st grade summer school.
"An employee grosses $100K. In order to max his 401K, he contributes 18%"
No he doesn't contribute 18% to max out. IT'S $18,000 MAX! The IRS doesn't place a max percentage wise, it's a dollar amount, as in $18,000 max. Earn $200,000 and it's still $18,000 max contributed by the employee into his 401K ! Did you go to school with brown slave?

 

[twoweeled]

Oh crap!!! I was wrong on the 6% matching! That would be $6000 matching funds max from the company. Ohhhh crap! ooooops!
I gotta pee.

 

[Brownslave688]

Of course contributions are based on gross wages. Where do I say it's based on net earnings? Of course it's based on gross. duhh.
2. If you are able to exceed the $18,000 max into your 401k contributions, than I am wrong. I am not aware of that. I am basing it on $18,000 max 401 K contributions.
3. The rest of what you say, is totally wrong. you'd better sign up for my class too. but make it 1st grade summer school.
"An employee grosses $100K. In order to max his 401K, he contributes 18%"
No he doesn't contribute 18% to max out. IT'S $18,000 MAX! The IRS doesn't place a max percentage wise, it's a dollar amount, as in $18,000 max. Earn $200,000 and it's still $18,000 max contributed by the employee into his 401K ! Did you go to school with brown slave?

You taught our nations youth?


I guess that explains a lot about our current public school situation.

 

[twoweeled]

You taught our nations youth?


I guess that explains a lot about our current public school situation.

taught public, went to parochial school. Who gets blamed?
I can't stop laughing!!!!

 

[Brownslave688]

@twoweeled what you're misunderstanding is exactly what a 6% match is. I want you to finish this math problem.


Employee makes 100k a year and has 18% of his salary put into his 401k every week. His company matches up to 6% of his contributions. How much does his company put into his 401k?

 

[twoweeled]

@twoweeled what you're misunderstanding is exactly what a 6% match is. I want you to finish this match problem.


Employee makes 100k a year and has 18% of his salary put into his 401k every week. His company matches up to 6% of his contributions. How much does his company put into his 401k?

Yep! Where I got it wrong, was matching 6% of the employees contribution (6% of $18,000 = $1080) rather than matching the first 6% contributed up to 401K (which based on max $18,000) can be as high as $6,000.

 

[FrigidFTSup]

Yep! Where I got it wrong, was matching 6% of the employees contribution (6% of $18,000 = $1080) rather than matching the first 6% contributed up to 401K (which based on max $18,000) can be as high as $6,000.

So what you're saying is, he was right all along.

 

[Brownslave688]

Yep! Where I got it wrong, was matching 6% of the employees contribution (6% of $18,000 = $1080) rather than matching the first 6% contributed up to 401K (which based on max $18,000) can be as high as $6,000.

That's all anyone was trying to explain to you was that you were confused on what exactly a 6% match meant.

 

[twoweeled]

That's all anyone was trying to explain to you was that you were confused on what exactly a 6% match meant.

As my dad would say in a situation similar to this one.
"Good thing I wasn't trying to split the atom, for the first time"!

 

[Brownslave688]

So what you're saying is, he was right all along.

 

[twoweeled]

 

[FrigidFTSup]

This thread has me being nicer to you than I feel comfortable with

 

[Brownslave688]

This thread has me being nicer to you than I feel comfortable with

When you said 3.5% was $630 last night I was ready to come through the screen and choke you out.

 

[FrigidFTSup]

When you said 3.5% was $630 last night I was ready to come through the screen and choke you out.

 

[twoweeled]

This thread has me being nicer to you than I feel comfortable with

I was going back an reading all the post that came after. I read one from, upstate about 4% being $4,000 based on $100,000 but only up to 6%. And it was like; Ohhh crap!! The batteries starting working again.
I've always viewed the difference between men and women as;
Women can greet one another with a "hello" in a certain tone. Those women may not want to see each other for the rest of their lives.
Men can M-friend each other and degrade one another for an hour.
But when he goes to the refrigerator he'll turn around n say:
Wanna another beer??

 

[twoweeled]

I was going back an reading all the post that came after. I read one from, upstate about 4% being $4,000 based on $100,000 but only up to 6%. And it was like; Ohhh crap!! The batteries starting working again.
I've always viewed the difference between men and women as;
Women can greet one another with a "hello" in a certain tone. Those women may not want to see each other for the rest of their lives.
Men can M-friend each other and degrade one another for an hour.
But when he goes to the refrigerator he'll turn around n say:
Wanna another beer??

 

[Brownslave688]

I was going back an reading all the post that came after. I read one from, upstate about 4% being $4,000 based on $100,000 but only up to 6%. And it was like; Ohhh crap!! The batteries starting working again.
I've always viewed the difference between men and women as;
Women can greet one another with a "hello" in a certain tone. Those women may not want to see each other for the rest of their lives.
Men can M-friend each other and degrade one another for an hour.
But when he goes to the refrigerator he'll turn around n say:
Wanna another beer??

Yep.

I had said what I was trying to say in every way I knew possible and was frustrated.


I figured the meaner I was the more likely you were to say damn this SOB really thinks he's right and maybe you'd look at it a different way.

 

[By The Book]

Yep.

I had said what I was trying to say in every way I knew possible and was frustrated.


I figured the meaner I was the more likely you were to say damn this SOB really thinks he's right and maybe you'd look at it a different way.

I look at it this way.....2 separate accounts. Employee puts up to $18,000 in theirs and the employer puts up to $6% match,(based on employees gross wages)which can be the remainder up to the IRS limits. In 2015 the limit was $53,000. So the employer could put in $35,000.