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Should I leave my company for 401k matching?
Posted on 5/7/23 at 12:10 pm
Posted on 5/7/23 at 12:10 pm
Been working at a company for over 3 years, so about 40% vested but the company stopped matching due to COVID before I was able to start the 401k program.
Many other companies have a match but I would be starting over with vesting and probably not get to 20% until at least 2 years with another company.
So should I stick it out with my current company and hope matching comes back and take advantage of vesting or just jump ship?
I've reached out to HR and it has gotten nowhere in getting a solid answer on reinstating the match.
Update since some are asking:
I'm a travel Physical Therapist, compensation isn't too different from company to company, depends on the contract. Problem is switching companies ususally means waiting 1000 hours until you're eligible to even start investing in their 401k for which you're not even vested in until 2 years after. Problem is I'll eventually settle down so I won't be at any company for very long, that's why I was planning on just waiting it out and hope the company match returns before I stop traveling.
Many other companies have a match but I would be starting over with vesting and probably not get to 20% until at least 2 years with another company.
So should I stick it out with my current company and hope matching comes back and take advantage of vesting or just jump ship?
I've reached out to HR and it has gotten nowhere in getting a solid answer on reinstating the match.
Update since some are asking:
I'm a travel Physical Therapist, compensation isn't too different from company to company, depends on the contract. Problem is switching companies ususally means waiting 1000 hours until you're eligible to even start investing in their 401k for which you're not even vested in until 2 years after. Problem is I'll eventually settle down so I won't be at any company for very long, that's why I was planning on just waiting it out and hope the company match returns before I stop traveling.
This post was edited on 5/11/23 at 2:19 pm
9
Posted on 5/7/23 at 1:56 pm to BOZ4LSU
don't follow. if the company stop matching before you started a 401k, meaning they haven't contributed to you 401k whats vested 40%? your money is your money 100% from day one. they matched nothing so far. if they reinstated tomorrow you still have 3 years min to be 100% if they count the 2 year they didn't offer as part of the vesting period. If you find equal job that starts contributing day 1 you aren't really losing anything IMO. with new job tell them you need signing bonus to cover money you are leaving behind which appears to just be time.
Posted on 5/7/23 at 2:05 pm to ks_nola
You're correct, no matching from the company yet so nothing vested from them. I'm saying if/when they start a match I'd be at 40%.
Posted on 5/7/23 at 2:11 pm to BOZ4LSU
If they can't match now they are in the toilet are greedy pos
Posted on 5/7/23 at 3:31 pm to BOZ4LSU
I have no idea what industry you’re in. But if your company is still struggling enough financially after Covid that they’ve been unable to reinstate the company match, I’d probably be looking for other opportunities regardless of the match situation.
Posted on 5/7/23 at 3:40 pm to BOZ4LSU
There’s no set amount a Company HAS to match.
This could be theoretically a $2k or $3k per employee annual exposure to the firm.
Peanuts.
The message management is sending you is loud and clear: we don’t care if you leave and/or the company is in terrible financial condition.
I’d be dusting off my resume.
If you care about anyone above you in the organizational chart, tell them (after you leave) that this failure was a reason you bolted.
If you don’t have any allegiance to anyone there, tell them nothing.
This could be theoretically a $2k or $3k per employee annual exposure to the firm.
Peanuts.
The message management is sending you is loud and clear: we don’t care if you leave and/or the company is in terrible financial condition.
I’d be dusting off my resume.
If you care about anyone above you in the organizational chart, tell them (after you leave) that this failure was a reason you bolted.
If you don’t have any allegiance to anyone there, tell them nothing.
This post was edited on 5/7/23 at 3:41 pm
Posted on 5/7/23 at 4:18 pm to BOZ4LSU
quote:I always advise folks to look. Do a search. You may find other aspects of your compensation more than requite for lack of a 401k match. OTOH you may find an increase in salary w/ a 401k match. You don't know if you don't look.
Should I leave my company for 401k matching?
Been working at a company for over 3 years
In the same vein, an employee can really screw up if they believe, without full understanding of the facts, that the "grass is greener" somewhere else.
Quietly float your resumé. See what's out there.
Posted on 5/8/23 at 10:07 am to BOZ4LSU
Youve given none of the details that would go into this decision. Income at company A vs B and match percentage obviously but youve also got to weigh how much you like current job, prospects for raise/promotion, job security, other benefits etc. All else equal if you're making say $100k and new company matches 3% maybe it isnt worth jumping ship over $3k and having to wait to vest. But if moving to better situation and match or the match % and/or income is much higher. If you dont like the current situation or think the company is in a tedious position financially look elsewhere for those reasons not the match.
Posted on 5/8/23 at 12:19 pm to BOZ4LSU
quote:
I've reached out to HR and it has gotten nowhere in getting a solid answer on reinstating the match.
Because they wouldn't know, they only institute the policies the executive team, owners, tell them.
Some companies have 100% vesting from day 1, so losing the vesting status should not deter you from looking just ask them about their matching/vesting policies during the compensation phase of the interview process.
As others said, the vesting part wouldn't be a make-or-break issue for me, but it is a sign of some potentially much larger issues with the company if they still have not recovered enough to bring back matching.
Posted on 5/9/23 at 7:43 am to Weekend Warrior79
quote:
Some companies have 100% vesting from day 1, so losing the vesting status should not deter you from looking just ask them about their matching/vesting policies during the compensation phase of the interview process.
Yeah, in my industry, I've never heard of a vesting period for Company match. It's match up x% from day one. Those companies are out there.
Posted on 5/9/23 at 9:09 am to Jon A thon
quote:Never heard of a vesting for company match? That is probably the norm rather than the exception.
Yeah, in my industry, I've never heard of a vesting period for Company match. It's match up x% from day one. Those companies are out there.
Posted on 5/9/23 at 9:12 am to NOSHAU
I would definitely agree that it's more popular to have a vesting period than none at all. Our company is a Safe Harbor and we match 100% from day 1 which I'm thankful for.
Posted on 5/9/23 at 9:46 am to Jon A thon
quote:
Yeah, in my industry, I've never heard of a vesting period for Company match. It's match up x% from day one. Those companies are out there.
For my company, it was 5 years to be 100% vested.
But they also still have a pension, too.
And on-boarding new hires at the time was 6 figure expenses.
For my wife (coordinator for county department), vesting is 5 years. It is actually doing what the county wants it to do (she would probably change jobs with all of the wage inflation this minute if it wasn't for the 401k match that she has marked on the calendar).
Now that I think about it. I have been with my employer 15 years. And I may not have stuck through the first 5 if it weren't for the match and pension offer.
Posted on 5/9/23 at 11:33 am to BOZ4LSU
If I was you I'd leave immediately and take a 10% pay cut to find a 5% 401k match. You need to have priorities Op.
Seriously, why would you discuss the 401k match without the rest of your compensation? 401k is just one piece of a compensation package that starts with salary, bonus, commission, health care, time off, retirement, etc.
Seriously, why would you discuss the 401k match without the rest of your compensation? 401k is just one piece of a compensation package that starts with salary, bonus, commission, health care, time off, retirement, etc.
Posted on 5/9/23 at 12:21 pm to Jag_Warrior
quote:
I have no idea what industry you’re in. But if your company is still struggling enough financially after Covid that they’ve been unable to reinstate the company match, I’d probably be looking for other opportunities regardless of the match situation.
This
Posted on 5/9/23 at 1:15 pm to meansonny
Can’t beat pension and SSA, or straight pension and no SSA if it’s a State funded one. We hardly use our 401K.
Posted on 5/9/23 at 2:13 pm to BenDover
quote:Small company with a lot of highly paid employees?
I would definitely agree that it's more popular to have a vesting period than none at all. Our company is a Safe Harbor and we match 100% from day 1 which I'm thankful for.
Posted on 5/10/23 at 8:27 am to BOZ4LSU
If the company is too broke/tight to match 401K contributions even a little, it’s probably time to move on.
Posted on 5/10/23 at 9:06 am to NOSHAU
quote:
Small company with a lot of highly paid employees?
This is sort of our situation. Have a decent balance between high wage earners and low wage earners; but majority of the lower wage earners do not contribute while all of the high wage earners do.
Going to 100% vested from day 1 pre-dated me starting with the company, so not sure if that was the logic and it helped with costs.
Posted on 5/11/23 at 6:35 am to BOZ4LSU
No company match is some BS. What's the point in even putting your money in a 401k at that point
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