Retirement...contract talks

[oldngray]

You've got that right! No possible way. They will have to up the ante. No way, does the company (or the Union) believe we'll accept 6%. They know it'll have to be much much higher. But it still won't be as good as we have now, and what we have now is only good if you compare it to lousy pension plans.

What makes you think UPS will match anything into a 401k? As long as there is a pension plan it will never happen.

 

[IVE GOTTA PACKAGE 4U]

What makes you think UPS will match anything into a 401k? As long as there is a pension plan it will never happen.

I could see that for the part timers ... maybe .

 

[twoweeled]

This has all been covered in this thread but I'll type it 1 more time and hope that you slow down and read and comprehend it this time.


I only mentioned my wife's situation because you seemed to be confused about contribution limits. I was not comparing it to ups in any way shape or form.

Now the math that will hopefully lead to you understanding a 401k match.

You make 100k a year and contribute 6% to your 401k. A 6% match means the company would match 100% of that 6% that you put in. So you would put in 6k and they would put in 6k. This means the higher your salary the more money a company contributes on your behalf.

I had no confusion. We're discussing 401K max and a possible 6% match. You decide to bring your wife's 401k yearly contributions equaling approx $40K. Of course I want to know how 6% match with a max of $18K max, can end up at approx $40K? I was trying to explain to you what a 6% match means and how it ends far short of $40K with a 401K max of $18000. The math was simple, but I just assumed your calculator was low on batteries.
How/why you would forget to mention "profit sharing" is beyond me. Maybe it just didn't ring any bells with you? But I knew you were missing something in your calculations. Yep! $20,000 of profit sharing is what you were missing! I have no problem with understanding, as long as i'm given "all the pertinent" information. I doubt you'll see "profit sharing" mentioned in anybody else's post.

 

[1989]

Trying not to brag, but, I was one of those old timers. But I wasn't alone. If you had just half a brain,
which I like to think I do, you took that thrift plan money and dumped it all into the IPO. And that thrift plan
money really added up over 20 years. There were years that it was paying 20 to 25%.

Putting money into the IPO was illegal. That's why you could not buy shares after they announced the IPO.

 

[Brownslave688]

I had no confusion. We're discussing 401K max and a possible 6% match. You decide to bring your wife's 401k yearly contributions equaling approx $40K. Of course I want to know how 6% match with a max of $18K max, can end up at approx $40K? I was trying to explain to you what a 6% match means and how it ends far short of $40K with a 401K max of $18000. The math was simple, but I just assumed your calculator was low on batteries.
How/why you would forget to mention "profit sharing" is beyond me. Maybe it just didn't ring any bells with you? But I knew you were missing something in your calculations. Yep! $20,000 of profit sharing is what you were missing! I have no problem with understanding, as long as i'm given "all the pertinent" information. I doubt you'll see "profit sharing" mentioned in anybody else's post.

Go read post 119 I covered it before any of your "misunderstanding"


You don't have a clue what a 6% match means. You've said more than once in this thread that a 6% match is $1080.


Quit wasting my time and go read 401k for dummies.

 

[twoweeled]

Go read post 119 I covered it before any of your "misunderstanding"


You don't have a clue what a 6% match means. You've said more than once in this thread that a 6% match is $1080.


Quit wasting my time and go read 401k for dummies.

What is a 6% match, to you? I'm already laughing at what foolishness your going to come out with now. LOL!

 

[UpstateNYUPSer(Ret)]

What is a 6% match, to you?

You put in 6%, the company puts in 6%.

 

[twoweeled]

You put in 6%, the company puts in 6%.

Right, but the subject is really what is 6% of the maximum contribution into the 401K. Which I've been approximating that was $18,000 for 2015. So,,, we're now arguing what is 6% of 18,000? I said it's about $1080. Brownslave feels that's wrong. Damn, am I wrong? I hope not.

 

[Brownslave688]

6% of your income.

The wording is odd. They match 100% of your contribution. UP TO 6% of your income.

They match 6% which is approx 11k a year. The rest is profit sharing.

Now the math that will hopefully lead to you understanding a 401k match.

You make 100k a year and contribute 6% to your 401k. A 6% match means the company would match 100% of that 6% that you put in. So you would put in 6k and they would put in 6k. This means the higher your salary the more money a company contributes on your behalf.

What is a 6% match, to you? I'm already laughing at what foolishness your going to come out with now. LOL!

Not sure how many times I need to explain it?

 

[Brownslave688]

Right, but the subject is really what is 6% of the maximum contribution into the 401K. Which I've been approximating that was $18,000 for 2015. So,,, we're now arguing what is 6% of 18,000? I said it's about $1080. Brownslave feels that's wrong. Damn, am I wrong? I hope not.

Yes you're wrong. Apparently you do not understand common 401k language.

 

[twoweeled]

Yes you're wrong. Apparently you do not understand common 401k language.

Then again. What do think 6% of 18,000. If I get anything but a number, we'll just assume your abacus isn't working.

 

[Brownslave688]

Then again. What do think 6% of 18,000. If I get anything but a number, we'll just assume your abacus isn't working.

6% match is not 6% of 18k. FFS no one cares what 6% of 18k is because it has no relation at all to ups matching at 6%.

 

[UpstateNYUPSer(Ret)]

You can put in as much as you want but UPS would only match the first 6%.

My son's 401k matches in full up to 4% with an additional 1% when he contributes 6%.

401k matches are free money.

 

[UpstateNYUPSer(Ret)]

6% match is not 6% of 18k. FFS no one cares what 6% of 18k is because it has no relation at all to ups matching at 6%.

Uh, yeah it does. You have to contribute at least 6% in order to get the match.

 

[Brownslave688]

Uh, yeah it does. You have to contribute at least 6% in order to get the match.

He thinks a 6% match means they match 6% of what you put in.

 

[twoweeled]

6% match is not 6% of 18k. FFS no one cares what 6% of 18k is because it has no relation at all to ups matching at 6%.

oh boy, where does one begin with you. I use to teach 4th graders, and I really do not remember it being this difficult. I'll give it one more try, but next year, brownslave. You sit at the front of the class. When we enter into the 401 K, we chose how much per paycheck we wish to contribute. But!! there is a maximum per year you can contribute into the 401K (pretax). That is a maximum per year. You can choose many different percentages per paycheck, but the yearly maximum will still be held in compliance. That maximum was about $18,000 for 2015. This maximum has been going up every year, normally approx $500. Then you max contribution goes up accordingly. 2015, the max was approx $18,000.
I think here is where you really get lost. Company's will sometime off a company match, up to a percentage of an agreed amount. sometimes 3%, it may be 6% ! Stay with me brown, it's going to get tricky for you. If that agreed amount is (hypothetically) 6%. That means the company will match your weekly contribution into the 401K to 6%. If you contribute $100 a week, the company will contribute $6 ! That is 6% of $100 ! Are you with me, brown?
But!! regardless of how much you contribute a week, YOU cannot contribute, more than the max allowed by the IRS. Which in this example is $18,000! So, when you get to the $18,000 max allowed, you can not contribute anymore into the 401K (pretax, after tax is different). So, if you were to make larger contributions, (hypothetically) say $1,000 a week. Your contributions would cease at the end of the 18th week, because you have not contributed the max of $18,000!!! I bet I lost you on that last curve, huh brown?
So, by extension. Since you can only contribute $18,000 and the company is only matching up to 6%, the company in theory will not contribute any more than 6% of $18,000, which equals $1080 !!!!
Yes, the company only matches 6%, but you can contribute more. But you can't contribute more than the legal max of $18,000!!
Again, 6% of $18,000 (max) is $1080.
Sorry Brown. But that's all I got. You have may to attend my summer school if that wasn't clear enough for you.

 

[Brownslave688]

@twoweeled

What is a 401k Company Match - Employer Contribution

 

[twoweeled]

Uh, yeah it does. You have to contribute at least 6% in order to get the match.

LOL, Of course you are correct, but good luck with that explanation.

 

[Brownslave688]

oh boy, where does one begin with you. I use to teach 4th graders, and I really do not remember it being this difficult. I'll give it one more try, but next year, brownslave. You sit at the front of the class. When we enter into the 401 K, we chose how much per paycheck we wish to contribute. But!! there is a maximum per year you can contribute into the 401K (pretax). That is a maximum per year. You can choose many different percentages per paycheck, but the yearly maximum will still be held in compliance. That maximum was about $18,000 for 2015. This maximum has been going up every year, normally approx $500. Then you max contribution goes up accordingly. 2015, the max was approx $18,000.
I think here is where you really get lost. Company's will sometime off a company match, up to a percentage of an agreed amount. sometimes 3%, it may be 6% ! Stay with me brown, it's going to get tricky for you. If that agreed amount is (hypothetically) 6%. That means the company will match your weekly contribution into the 401K to 6%. If you contribute $100 a week, the company will contribute $6 ! That is 6% of $100 ! Are you with me, brown?
But!! regardless of how much you contribute a week, YOU cannot contribute, more than the max allowed by the IRS. Which in this example is $18,000! So, when you get to the $18,000 max allowed, you can not contribute anymore into the 401K (pretax, after tax is different). So, if you were to make larger contributions, (hypothetically) say $1,000 a week. Your contributions would cease at the end of the 18th week, because you have not contributed the max of $18,000!!! I bet I lost you on that last curve, huh brown?
So, by extension. Since you can only contribute $18,000 and the company is only matching up to 6%, the company in theory will not contribute any more than 6% of $18,000, which equals $1080 !!!!
Yes, the company only matches 6%, but you can contribute more. But you can't contribute more than the legal max of $18,000!!
Again, 6% of $18,000 (max) is $1080.
Sorry Brown. But that's all I got. You have may to attend my summer school if that wasn't clear enough for you.

Please anyone that is reading this know that what I have bolded is 100% false.


This is where you are lost. That's is not the definition of a 6% 401k match. I repeat that is not how a 401k match works.

 

[Brownslave688]

oh boy, where does one begin with you. I use to teach 4th graders, and I really do not remember it being this difficult. I'll give it one more try, but next year, brownslave. You sit at the front of the class. When we enter into the 401 K, we chose how much per paycheck we wish to contribute. But!! there is a maximum per year you can contribute into the 401K (pretax). That is a maximum per year. You can choose many different percentages per paycheck, but the yearly maximum will still be held in compliance. That maximum was about $18,000 for 2015. This maximum has been going up every year, normally approx $500. Then you max contribution goes up accordingly. 2015, the max was approx $18,000.
I think here is where you really get lost. Company's will sometime off a company match, up to a percentage of an agreed amount. sometimes 3%, it may be 6% ! Stay with me brown, it's going to get tricky for you. If that agreed amount is (hypothetically) 6%. That means the company will match your weekly contribution into the 401K to 6%. If you contribute $100 a week, the company will contribute $6 ! That is 6% of $100 ! Are you with me, brown?
But!! regardless of how much you contribute a week, YOU cannot contribute, more than the max allowed by the IRS. Which in this example is $18,000! So, when you get to the $18,000 max allowed, you can not contribute anymore into the 401K (pretax, after tax is different). So, if you were to make larger contributions, (hypothetically) say $1,000 a week. Your contributions would cease at the end of the 18th week, because you have not contributed the max of $18,000!!! I bet I lost you on that last curve, huh brown?
So, by extension. Since you can only contribute $18,000 and the company is only matching up to 6%, the company in theory will not contribute any more than 6% of $18,000, which equals $1080 !!!!
Yes, the company only matches 6%, but you can contribute more. But you can't contribute more than the legal max of $18,000!!
Again, 6% of $18,000 (max) is $1080.
Sorry Brown. But that's all I got. You have may to attend my summer school if that wasn't clear enough for you.

I can not even begin to explain how hard you face planted after the first half paragraph.