You may find these links helpful:

• 401(k) Fund Selection Guide
• 401(k) FAQs
• "How to handle $"

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

You are correct- if you leave before 2 years you will lose all the money your employer put into the 401K as a match.

yeah, that's a good match.

your 7% is always your money.

They'll match 125% of 6% = 7.5% of their money goes to your 401k, but it's not really your until you're vested (12/19/2024).

A target date fund is a great place for your money, assuming it has a low expense ratio. Schwab Index target date fund is probably fine. It's a single fund that contains all the diversity you need -- you don't need to invest in other funds.

>"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.

Darn. That is a little disappointing to hear. I wonder what I should do now, keep contributing or don’t contribute. I don’t see myself staying there for two years. Though I could be wrong.

Thank you. So I won’t look into diversify my fund. However, now I have another dilemma I am really not sure if I’m gonna end up being there two years, so I wonder if there is a point in still continuing to contribute.

Yes, you should still contribute. The tax benefits alone on your money makes it worthwhile.

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.

You get all of your money, and tax advantaged investing is good, even without the employer match.

Ok I’ll continue to keep it at 7 percent!

Thank you I will now.

Also -- for your piece of mind, if you change jobs, you'll be able to roll over this 401k money to another job, or an individual traditional IRA.

Ideally, you probably want to even save more for retirement -- 15% if you can swing it.

You can diversify in terms of tax strategy by putting your additional retirement savings in a Roth IRA.

Check out the flowchart on this page, it has a lot of other good advice:

https://www.reddit.com/r/personalfinance/wiki/commontopics/

I still have my 401k from my previous job. Do you personally recommend to keep it there or roll it to my Roth IRA or current employer 401k?

Thank you for your help! And I have seen that chart. Maybe I will increase my contribution. Is it better to focus on my employer 401k then Roth IRA? Even if I don’t plan on staying for two years?

https://www.reddit.com/r/personalfinance/wiki/commontopics/

https://www.reddit.com/r/personalfinance/wiki/rothortraditional/

Thank you!

For your previous 401k: only roll it into your Roth IRA if it was Roth 401k money. Otherwise, rolling into your current employer 401k is a fine choice.

For your current contributions: the standard advice is to go in this order:

1. 401k up to the match
2. Roth IRA up to the limit
3. 401k up to the limit

thank you! ill have to login to my empower (my previous employer) and check to see what it was.

i came across employee pre tax and employee roth 401k when trying to change my contribution amount to 10 percent. for some reason, i got a little confused on what pre tax is, but then thats another word for traditional lol. it seems employee roth 401k is the way to go.

​

but thanks for your suggestion, ill focus more on my IRA and then eventually work more on my 401k up to the limit (or as high as i can)

Sure thing. I suggest just using the traditional (pre tax) 401k, then going to Roth IRA, then back to traditional 401k

Here's some reading, if you have the time:

/r/personalfinance/comments/10qwnrx/why_you_should_almost_never_contribute_to_a_roth/

This is very confusing 😫. I thought the general consensus was employee Roth IRA. I had just changed it last night. Ok I’ll read that again later. Hopefully I won’t get more confused lol