It Could Always Be Worse

[UpstateNYUPSer(Ret)]

It's called deferred compensation. That's why you pay taxes on withdrawals. Ttku

Unless it is a Roth.

 

[MAKAVELI]

Unless it is a Roth.

Do you get a match on Roth contributions?

 

[UpstateNYUPSer(Ret)]

Do you get a match on Roth contributions?

401k Roth? Yes.

 

[MAKAVELI]

401k Roth? Yes.

You would still pay taxes on the match portion.

 

[Oldfart]

Everyone is automatically enrolled. Ttku

MANY have also opted out. Just ask a lot of my coworkers. They brag about it constantly.

 

[MAKAVELI]

MANY have also opted out. Just ask a lot of my coworkers. They brag about it constantly.

They can brag all they want. They are only reducing their compensation.

 

[Nolimitz]

So those that are not enrolled in the 401K get the match as well? Did they not work as well? The match is a benefit for being enrolled in the 401K. It is not compensation as defined by the IRS. They have the ultimate say in any income and tax matters.

You have to opt out. The only reason that FedEx or any other corp. matches in a 401K is to encourage the lowly peon to contribute at all. By using the match they are able to increase the % an HCE can contribute. I was once topped at 10% because I was considered an HCE at another employer. So in essence by getting the peons in the group to contribute at least 6% it actually pays the big boys to cough up a bit more so they can get around the HCE reg's

 

[Oldfart]

They can brag all they want. They are only reducing their compensation.

I never said they were smart. They will be working till they are 65 or so as a result of poor planning.

 

[Oldfart]

401k Roth? Yes.

I never knew we got a match on a Roth. I lowered my 401K down to 6% one year and did 14% in a Roth. Took such a hit at tax time I discontinued the Roth. Gonna take my chances on taxes when I retire on the advice of my tax man.

 

[vantexan]

You have to opt out. The only reason that FedEx or any other corp. matches in a 401K is to encourage the lowly peon to contribute at all. By using the match they are able to increase the % an HCE can contribute. I was once topped at 10% because I was considered an HCE at another employer. So in essence by getting the peons in the group to contribute at least 6% it actually pays the big boys to cough up a bit more so they can get around the HCE reg's

They contribute matching funds because all of the 401k money is used by Wall Street to buy stock. It's how our corporate exec's get super rich. For all the complaining about the 1% who do extremely well people don't seem to realize it's themselves who are making that happen.

 

[Nolimitz]

I never knew we got a match on a Roth.

YOU DONT!
Dave is w/ UPS

 

[UpstateNYUPSer(Ret)]

YOU DONT!
Dave is w/ UPS

We don't get a match on either one.

 

[Oldfart]

They contribute matching funds because all of the 401k money is used by Wall Street to buy stock. It's how our corporate exec's get super rich. For all the complaining about the 1% who do extremely well people don't seem to realize it's themselves who are making that happen.

So are you gonna get back at the super rich as you call them and NOT enroll in the 401k to prove a point and not allow them to get richer.

I can't worry about the super rich, I can only worry about me.

 

[Fred's Myth]

Is it taxed at the time it was deposited? Learn to read fella. NOBODY mentioned the taxes at the time of withdrawal. Once again, I will go slow for you since you are a little slow. Someone said that your portable is considered compensation WHILE you are working and having it deposited into your pension account. I said it was a benefit NOT compensation because it does not go on your tax return. You THINK it is taxable income at the time it is deposited while you are working. Like I said, you continue to show your ignorance.

Fedex refers to it as "your total compensation package"...is Fedex incorrect?

 

[Fred's Myth]

You are missing the point. He would not get the match if he didn't "WORK" for his employer. Hence it is NOT FREE MONEY.

Upstate is about as sharp as a marble. You can't be oblique, for his sake.

 

[vantexan]

So are you gonna get back at the super rich as you call them and NOT enroll in the 401k to prove a point and not allow them to get richer.

I can't worry about the super rich, I can only worry about me.

It's THE reason our pay is suppressed. More profit equals bigger dividends. When dividends are paid quarterly, Wall Street buys a lot of the stock, driving the price up. Our exec's then exercise their stock options, making more than they would otherwise. So it comes down to do you want better pay or settle for the 401k match? That's why we need an environment where business can thrive and compete for workers. That way we can all benefit from our system, not just the top brass or employees who topped out a generation ago. It's not complaining, it's analysis of what's been going on for 20+ years now. That's our reality.

 

[Oldfart]

Fedex refers to it as "your total compensation package"...is Fedex incorrect?

If the IRS doesn't consider your PORTABLE part of your yearly compensation and make you pay taxes on it the year you have it deposited into your account, that is good enough for me. Fedex can call it a birthday gift for all I care.

 

[MAKAVELI]

If the IRS doesn't consider your PORTABLE part of your yearly compensation and make you pay taxes on it the year you have it deposited into your account, that is good enough for me. Fedex can call it a birthday gift for all I care.

And you can call it free money if you want. But it's not free and is part of our compensation for being employed at FedEx.

 

[Oldfart]

It's THE reason our pay is suppressed. More profit equals bigger dividends. When dividends are paid quarterly, Wall Street buys a lot of the stock, driving the price up. Our exec's then exercise their stock options, making more than they would otherwise. So it comes down to do you want better pay or settle for the 401k match? That's why we need an environment where business can thrive and compete for workers. That way we can all benefit from our system, not just the top brass or employees who topped out a generation ago. It's not complaining, it's analysis of what's been going on for 20+ years now. That's our reality.

Lets get the income taxes lowered for business and lets see if that happens.

 

[Oldfart]

And you can call it free money if you want. But it's not free and is part of our compensation for being employed at FedEx.

Ok. I will call it a Festivus gift from here on out.

Forbes and Morningstar call 401K match FREE MONEY. I will just let you call it what you want.