Submitted by david12795 t3_11cz027 in personalfinance
DaemonTargaryen2024 t1_ja5vmay wrote
>"We match 125% of contributions up to 6% of an employee's annual gross pay."
For every $1.00 you contribute, employer will put in $1.25. They'll match you up to your 6% contribution, but won't give any more match if you do 7% or higher. 125% of 6% is 7.5% so the employer match is effectively 7.5% as long as you do 6%.
You should do at least the 6%, but ideally higher up to 10 or 15% if you can afford it
>100% vesting in company matching contributions after two years of service.
Employer contributions will be put in regularly and you can see them in your account. But it's not actually yours if you leave the company too soon. If you leave before 2 years, you get none of the employer match. If you stay at least 2 years, all the employer match is yours when you leave.
You still want to contribute, (1) because you still need to save for retirement regardless of match, (2) because you don't want to end up staying 2 years and look back on all the free money you turned down
> You're always 100 percent vest in your contributions
Just means what you contribute is always yours, there's no vesting period for your own money.
>For associates hired after January 1, 2023, you must complete 1 year of service before you become eligible in the company matching contributions
Company won't give any employer match until you've worked there 1 year. But you lucked out, you were hired before then, so you got in before they made the match worse (by requiring a 1 year anniversary). Any new hires miss out on 1 years's worth of match (basically a 6% pay cut as far as I'm concerned)
>Rollover contributions, Roth rollover contributions, and Roth conversion contributions are not matched.
Just means if you rollover an old employer plan into this one, employer doesn't match any of it. They only match your current contributions.
david12795 OP t1_ja5y5u1 wrote
Thank you! You answered one of my questions that I had. I will continue to contribute. Though I wonder if I should increase my contribution since I do have a Roth IRA with fidelity that’s kinda been neglected.
DaemonTargaryen2024 t1_ja64zsx wrote
david12795 OP t1_ja65ppv wrote
Thank you!
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