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401K Match

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giacona
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401K Match  Reply with quote  

I am considering leaving my job for something better as there is no room for growth and my current company.

My current company has a great 401K match, which is why I am hesitant to leave. They match dollar for dollar up to the first 3% and .50 cents for the remaining 2%. So in reality I put in 5% and my employer puts in 4% meaning I am investing 9% of my paycheck.

Employers I worked for previously did not match anything close to what I am getting now. Most of them were offering something in the range of .40 cents on every dollar up to 6%. I do not have a crystal ball so no one knows what kind of match I will wind up with.

Do I have reason to be concerned? Obviously I should be able to know what the benefits are before accepting an offer. I am not going to just accept a lateral move, so it may take me some time to find the right position.

Would a not so good 401K match make someone turn down a job offer?

I just wanted to ask some opinions

Thanks
Post Sat Jul 05, 2014 5:51 pm
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Publius
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Benefits are one aspect of a job to consider when thinking about making a change, but it isn't the only thing. If you are able to get a new job with better prospects for advancement that pays 25% more, it is certainly worth it to miss out on the match because you can more than make up for it with your new salary and, if advancement opportunities are better, you can expect your salary to grow.

To give you an example from my experience, I was working in academia and making decent money, but the benefits were fantastic. My 403b (academic version of a 401k essentially) was ridiculous by most standards. The institution I worked for deposited 6% automatically for being enrolled and then matched the next 2% at a rate of 150%. So essentially, putting in 2% became 11%. The catch was that you vested 100% only after three years at the institution. About two years ago I left academia to join a smallish tech company that has no retirement account. This was a hard decision because the benefits were such a plus at my institution. I am now making about 50% more than I ever did in academia, so the lack of a 401k (or 403b) is moot because I am able to make up the difference easily with a higher salary.
Post Sat Jul 05, 2014 8:23 pm
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Publius
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Also, the match you have at your current job is about average at competitive firms. I think you might be surprised what is being offered now as the market gets more competitive for hiring firms.
Post Sat Jul 05, 2014 8:26 pm
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giacona
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Thanks a lot for your response.

It makes me realize to look at the big picture now when I do move it.

Until then I will just keep doing what I am doing and hope the account grows, this way when I do leave, I will have a nice chunk to roll over to an IRA
Post Sun Jul 06, 2014 10:34 pm
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