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<blockquote data-quote="Maui" data-source="post: 2680585" data-attributes="member: 45037"><p>This is correct.</p><p>Portable pension requires 1000 hours to receive compensations credit. That credit is a percentage of the hours worked in a given year. If your age + years of service is under 55, then the amount is, I think 5% and goes up to 8 or 9%. You also earn interest credits about 4% right now. </p><p></p><p>The 401K automatically opts new hires in at 3% and increases annually by 1% until it maxes at 10%. The default investment is a Vanguard Target Retirement Fund. FedEx matches 100% of your first 1% and 50% of the next 5% - that's where the 3.5% match comes from. There is no minimum number of hours worked for 401K match and the contribution.</p><p></p><p>The catch is that I think you have to be 21 for both plans. </p><p></p><p>I agree with you that whether or not to invest in Roth is somewhat individual. I like tax-free withdrawals in retirement, but I also like the tax-reduction of maxing out 401K contributions. Ideally, one could save $5500/year in a Roth and max out 401K at 18k, which is close to impossible for new hires.</p></blockquote><p></p>
[QUOTE="Maui, post: 2680585, member: 45037"] This is correct. Portable pension requires 1000 hours to receive compensations credit. That credit is a percentage of the hours worked in a given year. If your age + years of service is under 55, then the amount is, I think 5% and goes up to 8 or 9%. You also earn interest credits about 4% right now. The 401K automatically opts new hires in at 3% and increases annually by 1% until it maxes at 10%. The default investment is a Vanguard Target Retirement Fund. FedEx matches 100% of your first 1% and 50% of the next 5% - that's where the 3.5% match comes from. There is no minimum number of hours worked for 401K match and the contribution. The catch is that I think you have to be 21 for both plans. I agree with you that whether or not to invest in Roth is somewhat individual. I like tax-free withdrawals in retirement, but I also like the tax-reduction of maxing out 401K contributions. Ideally, one could save $5500/year in a Roth and max out 401K at 18k, which is close to impossible for new hires. [/QUOTE]
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