Retirement...contract talks

[Mugarolla]

He may be right because that gets you 3.5% of 18,000 and that is the max is it not?

And here I thought you were smarter than that.

 

[FrigidFTSup]

And here I thought you were smarter than that.

Yeah..... I'm not very proud of myself tonight

 

[realbrown1]

Well the central is toast but I think mine will be there. It's currently funded at 95% or something like that. So even with no new money or growth 95% of what I've earned will be there.

Don't believe that 95% number.

Technically it is more like 81%, but the government uses a different formula sort of like the unemployment numbers.

 

[realbrown1]

Maybe you should go back to teaching 4th graders and leave the more complicated math, and 401K investing, to the big boys.

The amount of money that your employer contributes to your 401K is not a percentage of the amount you contribute. It is a percentage of your gross wages.

You say that if you max your contributions to $18000 for the year, that the employer contribution will be 6% of $18000. Incorrect. It is 6% of your gross wages.

I'll keep math simple for you 4th graders.

An employee grosses $100K. In order to max his 401K, he contributes 18%

This gives him $18K contributed to his 401K. So what is the employers contribution, assuming a matching contribution up to 6%

This is 2nd grade math. It would be 6% (max) of $100K, or $6000.

So the total 401K contribution for this year would be $24K.

And yes, the max is $18K for your portion. With the employers matching contributions, you can go over that $18K limit.

Maybe you should go back to summer school yourself.

Most drivers don't make $100K a year.

Only us nutjobs that stay out until 7pm or later do.

So in my center, that would mean 80% of the drivers make $90K or less.

Some even make less than $75K.

 

[Mugarolla]

Most drivers don't make $100K a year.

Only us nutjobs that stay out until 7pm or later do.

So in my center, that would mean 80% of the drivers make $90K or less.

Some even make less than $75K.

I know. I was just making the math simple. Easier to calculate 6% of $100K in your head than it is to calculate 6% of $75K.

At $75K, the 6% match would be $4500 per year.

My point was that the 6% match is 6% of your gross wages, not 6% of your contribution portion into the 401K.

 

[oldngray]

I know. I was just making the math simple. Easier to calculate 6% of $100K in your head than it is to calculate 6% of $75K.

At $75K, the 6% match would be $4500 per year.

My point was that the 6% match is 6% of your gross wages, not 6% of your contribution portion into the 401K.

Good job at explaining it simply. Its not that complicated. People don't need to over think it.

 

[UpstateNYUPSer(Ret)]

I've told him half a dozen times.


It's obviously not being grasped.

Perhaps it is you who needs to read up on how a 401k match works.

When a company offers a 401k match, it means that they will match dollar for dollar your contribution up to a certain percentage.

For example, if the company does start to offer a 6% match, it means that it will match dollar for dollar your contributions, up to 6%. The key here is that you must set aside at least 6% to receive the full 6% match. If you only set aside 4% you will only receive a 4% match.

 

[UpstateNYUPSer(Ret)]

My point was that the 6% match is 6% of your gross wages, not 6% of your contribution portion into the 401K.

This is true but somewhat misleading.

You have to contribute at least 6% to get the full company match, which is a dollar for dollar match.

 

[UpstateNYUPSer(Ret)]

I figured with the whole wife being pregnant thing I'd throw you a bone

She became pregnant when you decided to throw her a bone.

 

[UpstateNYUPSer(Ret)]

I see guys at work that put in 30+ years terrified about what the next 10 years will bring. Feel terrible for them

Don't----their lack of preparation is their own fault, not yours.

 

[oldngray]

One would assume someone would take full advantage of a 6% match. Its possible someone wouldn't but that is like giving up free money. A possible scenario but not what you would expect to see.

 

[UpstateNYUPSer(Ret)]

Some even make less than $75K.

I barely broke $70K last year.

Yes, I am FT at top rate.

No, I don't take dead days.

 

[FrigidFTSup]

She became pregnant when you decided to throw her a bone.

Don't----their lack of preparation is their own fault, not yours.

Dave, it's hard to imagine why any woman would divorce you. You're such a sympathetic, caring man

 

[UpstateNYUPSer(Ret)]

Dave, it's hard to imagine why any woman would divorce you. You're such a sympathetic, caring man

I don't feel sorry for a grown man or woman making our kind of money who find' have the foresight to set aside money for retirement and is whining about pension being cut.

 

[Future]

Dave, it's hard to imagine why any woman would divorce you. You're such a sympathetic, caring man

 

[FrigidFTSup]

I don't feel sorry for a grown man or woman making our kind of money who find' have the foresight to set aside money for retirement and is whining about pension being cut.

Not everyone has the brains and foresight that you do

 

[Brownslave688]

Maybe you should go back to teaching 4th graders and leave the more complicated math, and 401K investing, to the big boys.

The amount of money that your employer contributes to your 401K is not a percentage of the amount you contribute. It is a percentage of your gross wages.

You say that if you max your contributions to $18000 for the year, that the employer contribution will be 6% of $18000. Incorrect. It is 6% of your gross wages.

I'll keep math simple for you 4th graders.

An employee grosses $100K. In order to max his 401K, he contributes 18%

This gives him $18K contributed to his 401K. So what is the employers contribution, assuming a matching contribution up to 6%

This is 2nd grade math. It would be 6% (max) of $100K, or $6000.

So the total 401K contribution for this year would be $24K.

And yes, the max is $18K for your portion. With the employers matching contributions, you can go over that $18K limit.

Maybe you should go back to summer school yourself.

Thank you.


Felt like I was on an island yesterday.

 

[Brownslave688]

Perhaps it is you who needs to read up on how a 401k match works.

When a company offers a 401k match, it means that they will match dollar for dollar your contribution up to a certain percentage.

For example, if the company does start to offer a 6% match, it means that it will match dollar for dollar your contributions, up to 6%. The key here is that you must set aside at least 6% to receive the full 6% match. If you only set aside 4% you will only receive a 4% match.

Yeah no .


Most of us understand the word MATCH!!!!


Look I can be a dick too. Your second paragraph is not true. Not all matches are 100% dollar for dollar matched. Until recently in fact a majority of plans were considered 50% match.

 

[Brownslave688]

Not everyone has the brains and foresight that you do

You mean the foresight to see that his pension was gonna be slashed?


Oh wait.

 

[Brownslave688]

This is true but somewhat misleading.

You have to contribute at least 6% to get the full company match, which is a dollar for dollar match.

Maybe you're confused on the definition of the word match?



Not too sure what's misleading.