401(k) Match

karene

We currently have two separate defined contribution plans and want to combine them into one. I am wondering what other organizations that have a 401(k) Plan are doing for a match? Does anyone do anything besides a 100% match up to a certain %?

Thank you for your help!

Kathy in Alabama

This year we came up with a matching plan that I love, and more importantly, our employees are very enthusiastic about it. As the company prospers, the employees share in the prosperity with a 401(k) match. If quarterly revenue meets budget for the quarter, then employee deferrals are matched 1:1 (dollar match for each dollar contributed). If quarterly revenue exceeds the budget by 5%, then the match is 1:1.5 (dollar and fifty cents match for each dollar contributed). If the quarter's revenue does not meet budget, then no deferral match for the quarter. So far for the first three quarters of the year, one quarter of 1:1, and two quarters were just misses. Fourth quarter is on tract to be at least 1:1 so far - historically we make 4th quarter budget. The owner hopes we pay the 1:1.5 match each quarter. One note we made clear at open enrollment - once a quarter is over, it's in the books - no going back if YTD budget is met and asking for missed matches. For any change, be sure you matching method is reflected in your plan document. Good luck!

HR in CA

We match 100% of the first 3% an employee contributes and 50% of the next 2%. It was this way at my last job as well.

However, I really like the plan listed above. Where can I sign up??

swbpr

Ours is great and based on years of service at the $7,500 total maximum per year:

0-.99 year 50% Company Max = $2,500
1-2.99 years 75% Company Max = $3,214
3-4.99 years 100% Company Max = $3,750
5 > years 125% Company Max = $4,167

NOTE: Employee can contribute more but the company cannot exceed max amounts above.

Vesting Schedule:
Less than 1 year 0%
1-2 years 50%
3-4 years 75%
5 > years 100%

Don D

Best feature of ours is the 100% immediate vesting in employer match.

System

We match 25 cents on the dollar when employees contribute up to 6 percent of their pay.

James Sokolowski
HRhero.com

E Wart

We match 50% on the the dollar up to the first 6%. (Obviously the maximum dollar amount is limited by the IRS regulations.)
This is immediately 100% vested and is funded each month when money is deposited. We also have a profit sharing contribution at the end of each year if we have been profitable.
My prior employer had a discretionary match that wasn't announced or released until after the end of each fiscal year. You had no idea if you got anything or how much all year long. (I really didn't like this.)
E Wart

mdm

we have 2 separate plans. For one of the plans, the employee makes contributions and for the other, the employer contributes 5% of the employees monthly wages.

C Wilson

We match $.50 on the $1.00 up to 5% of gross income per year. We have a graduated vesting schedule which takes six years to be fully vested.

mrbill

In my past life - .50c on the dollar for the initial 6% of contribution. Vesting schedule was 20% per year. Now I am in City Government, and we have a 457b plan, with no match.

Sassy

We match 1/2 up to 6%. This means that if an employee puts in 6% of their wage to the 401 K we match 3% and it goes on down. Of course they are able to put in more, but we only match up to their 6% which is our 3%.

Dutch2

We match dollar for dollar up to 3% and also contribute a 3% Profit Sharing every payday to every employee that has met the eligibility requirements of the plan. If the ee is putting in 3% they are receiving 6% from the company. If they are putting in 0%, they still receive the 3% Profit Sharing contribution. Our Board determines the Profit Sharing % for each year. Our plan limits the maximum amount an ee can put in to 50% of gross salary. Believe it or not we have two or three putting in the full 50%. Vesting is 20% a year; fully vested after 5 years.