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trmoore87 t1_ja9s8oj wrote

No, it means they will contribute 5% regardless of what you do, and they will add another 3% to match.

You put in 0%? get 5%

You put in 3%, get 8%

You put in 1%, get 6%.

The normal terminology for the 5% they are putting in is "safe harbor".

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guzzijason t1_jaa0ybj wrote

This is my take on it as well (further color added in a separate comment thread).

I think people tend to misunderstand the employer "direct contribution" because (at least in my experience) it seems rare that employers actually do that. Employers directly contributing PLUS offering a match seems like a nice plan.

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r4ipie OP t1_ja9v34p wrote

Thank you so much for this explanation!!

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trmoore87 t1_ja9vbvr wrote

No problem! I would still check with your HR to make sure.

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