New To Investing Thread

[Mrs. Gooch]

Seems like they should still have to pay you the match for the months they owe you when you leave.

[michigancat]

Seems like they should still have to pay you the match for the months they owe you when you leave.

I don't think so. They don't have to give us any match.

[IPA4Me]

Bonuses and 401K matches often stipulate that you have to be employed at the time of dispersement.

[sys]

what is the match, anyways?  if it caps at a % of your salary, and you wanted to leave some time in the nearish future, could you double your contribution in the first part of a year, maxing out the annual match on that, then quit anytime after you get the first match (which would be the full match you could get for a year)?

[sys]

you can beat this thing, michigancat.

[Kat Kid]

Seems like they should still have to pay you the match for the months they owe you when you leave.

I don't think so. They don't have to give us any match.

sounds like this is negotiable.

[Kat Kid]

what is the match, anyways?  if it caps at a % of your salary, and you wanted to leave some time in the nearish future, could you double your contribution in the first part of a year, maxing out the annual match on that, then quit anytime after you get the first match (which would be the full match you could get for a year)?

I can't imagine they would do this thing, seemingly only for the purpose of saving on the margins, and honor some sort of "over match." and pay that out in one 6 month lump.

[Kat Kid]

Like let's say they match up to 10%

If Rusty throws down 20% they will match the ten, why would they suddenly match the 20 for that 6 month period?  The only way this would work is if Rusty isn't doing the full match, which he should really be trying to do and this policy is frustrating his ability to do so while also leave the company.

[sys]

Like let's say they match up to 10%

If Rusty throws down 20% they will match the ten, why would they suddenly match the 20 for that 6 month period?  The only way this would work is if Rusty isn't doing the full match, which he should really be trying to do and this policy is frustrating his ability to do so while also leave the company.

i dunno how this works, the company i works for doesn't do a % of salary.  i envisioned it as they would match the % as it was contributed.  so they'd max 100% of the contribution until you hit 10%, then match nothing afterwards.  but i dunno.

i mean it doesn't have to be a quitting thing.  an employee could, for whatever reason, contribute 20% in the first part of a year, and 0% in the second, and if the company only matched half of the 20, then they'd be reneging on their commitment to match up to 10% of salary.

[steve dave]

This is how it normally works. Say they offer a 100% match up to 6%. So, as long as I put in 6% of my salary they put in another 6%. I put in 20% they would still put in 6%. I put in 3% they put in 3%.

[sys]

This is how it normally works. Say they offer a 100% match up to 6%. So, as long as I put in 6% of my salary they put in another 6%. I put in 20% they would still put in 6%. I put in 3% they put in 3%.

how would they handle it if you put in 12% for the first six months of a year and 0% for the second six months?

[steve dave]

This is how it normally works. Say they offer a 100% match up to 6%. So, as long as I put in 6% of my salary they put in another 6%. I put in 20% they would still put in 6%. I put in 3% they put in 3%.

how would they handle it if you put in 12% for the first six months of a year and 0% for the second six months?

they match ours every pay period so you'd still get 6% for the first six and zero for the second.

[sys]

they match ours every pay period so you'd still get 6% for the first six and zero for the second.

that's kinda messed up too, then.  didn't fully realize how great my company's match is.

[michigancat]

Seems like they should still have to pay you the match for the months they owe you when you leave.

I don't think so. They don't have to give us any match.

sounds like this is negotiable.

When would I negotiate this? When I leave? What leverage would I have at that point? Keep in mind I had no idea it was done this way when I accepted the job. (I didn't know about my bonus eligibility, either, which was a much nicer surprise than the lump sum match was a nuisance.)

[michigancat]

And keep in mind they're only matching half up to 6%, so at most I'm giving up a one time payment of 1.5%, and even that's not fully vested until I've been there 5 years.

[sys]

And keep in mind they're only matching half up to 6%.

man, that sucks.

[AbeFroman]

I get a 100% match up to 5% but since I hit 1 year at the company I get another x% on top. So I put in 5 and get 10. If I put in 3, they give 6. Have to stay 3 years to get fully vested tho.

[steve dave]

ITT I learn a lot of people have garbage benefits

[sys]

ITT I learn a lot of people have garbage benefits

i get 50% of however much the taxman lets me put in.  and as far as i know, the timing throughout the year doesn't matter.  there is a 5 year vest, but it goes up 20, 40, 60, 80% each year through year 5, so it's not all or nothing.  i knew it was pretty good, but i'd didn't realize all the little traps some of these other companies used to make theirs worse than they seemed.

[meow meow]

Why would you contribute half the year and then stop the second half, I feel like no one would do that

[Mrs. Gooch]

Why would you contribute half the year and then stop the second half, I feel like no one would do that

There's a yearly max to contributions, so maybe if you hit that.

[steve dave]

Why would you contribute half the year and then stop the second half, I feel like no one would do that

If you are leaving the company in 6 months

[wetwillie]

dont most companies have a fairly lengthy vesting period before you can realize the contributions?

[WonderMeal]

Mrs. WonderMeal's old company used to match once a year. 

She left about eight months before the match, but they still paid it out when the date came.   

[steve dave]

dont most companies have a fairly lengthy vesting period before you can realize the contributions?

Ours has none