• quicksand@lemm.ee
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    11 months ago

    Oh 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
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      11 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
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        11 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
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          11 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.