Comment on What did UAW members at the "Big 3" gain with their strike?
quicksand@lemm.ee 10 months agoOh I thought it meant they matched 100% up to 10% of your paycheck. That’s how my work does it but only up to like 3% and then 50% for another 3%
ChlorineAddict@lemmy.world 10 months ago
Say I have a 50% contribution match from my employer. For every $2 I contribute into my 401k my employer will add their own $1.
Some employers will force you to contribute a percentage of your paycheck towards your 401k, others will allow you to contribute up to a percentage of your paycheck, not all employers match though and not at the same rate. I believe my employer allows me to contribute up to 60% of my paycheck if I wanted (until the annual IRS limit is reached) but they will only match 50% of whatever dollar amount I send to the 401k account.
IRS will only let a person add $22,500 in 2023, which means if I max out my contribution my employer will add $11,250 for a total annual contribution of $33,750.
The IRS will only allow me and my employer combined to contribute $66,000 in 2023 to my 401k. I am unable to hit that $66,000 limit because my employer doesn’t match 293% of my contribution.
quicksand@lemm.ee 10 months ago
That’s cool that it’s uncapped for you. Lots of free money if you can make it work with your budget
ChlorineAddict@lemmy.world 10 months ago
I got lucky in certain areas and I try not to forget that.
Either way if it’s a contribution match limit or a paycheck limit, it has a green check mark next to it, so it’s gotta be an improvement on where they were. I’m all for bringing everyone up and I’m happy for them.
quicksand@lemm.ee 10 months ago
Amin