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What's your Match?

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  • Avatar BCBiker 
    Participant
    Status: Physician
    Posts: 236
    Joined: 01/10/2016

    5% guaranteed then they match the first 3% for people over a certain age (1.5% for people less than that age. I think it is 30 yo). So 8% match up to $280K. Fully vest after 3 years with company.

    One reason I took this job over others was for this benefit.

    AS a  funny story (for everyone except me),I passed on a start up gig (no 401(k) at the time) that roughly quadrupled in value within 6 months of the contract we had worked out, which was already generous on the equity side. I estimate from the approximate value of those shares that my 1st year equity would now be worth between $2-5M.  Of course the company has not had liquidity event and who knows but it looks like I traded $100 bills for pennies at this point when you compare retirement offerings to equity.

    I still like me job and that would have been a less stable career path. The growth was not predictable in my opinion.

    #214259 Reply
    Liked by SLC OB
    childay childay 
    Participant
    Status: Physician
    Posts: 1071
    Joined: 01/09/2016

    0-3 years 3%

    3-5 years 3.5%

    >5 years 4%

    #214266 Reply
    Liked by SLC OB
    Avatar okayplayer 
    Participant
    Status: Physician
    Posts: 126
    Joined: 05/25/2016

    My wife is an internist at a large practice with multiple clinics. ZERO match for any physician. I think it is insane and totally substandard.

    She has repeatedly asked ownership about it and been shot down. They claim this comes from the fact historically physicians there wanted a larger take home income. I think it’s largely BS as she is making MGMA median with no match of any kind to speak of.

    I wish the physicians who are employed by this group would collectively demand this, but not my battlento fight. Thoughts?

    #214272 Reply
    Liked by SLC OB
    Avatar JBME 
    Participant
    Status: Spouse
    Posts: 568
    Joined: 03/26/2018
    Splash Refinancing Bonus

    thoughts are your wife should look for another job. That’s nuts. My wife is an internist with a 401k and a 401a and both get different matches. She’s making below MGMA median but her benefits probably get her close to the median total package.

    #214273 Reply
    Liked by SLC OB, okayplayer
    Avatar okayplayer 
    Participant
    Status: Physician
    Posts: 126
    Joined: 05/25/2016

    To make matters worse, we are in an obscenely high state income tax state, so that supposed extra take-home is highly taxed. Very frustrating.

    #214281 Reply
    Lithium Lithium 
    Participant
    Status: Physician
    Posts: 1221
    Joined: 02/15/2016

    I wish the physicians who are employed by this group would collectively demand this, but not my battlento fight. Thoughts?

    Click to expand…

    I can see you haven’t worked around many employed physicians.

    #214282 Reply
    Liked by SLC OB, okayplayer
    Avatar okayplayer 
    Participant
    Status: Physician
    Posts: 126
    Joined: 05/25/2016

    True. I’m a practice owner and definitely have a different perspective.

    #214288 Reply
    Liked by SLC OB
    Avatar The Wiz 
    Participant
    Status: Other Professional, Spouse
    Posts: 60
    Joined: 05/01/2018

    4% capped at $4k.

    VP of Shoreside Operations for an inland marine company. Husband to an A/I Physician.

    #214293 Reply
    Liked by SLC OB
    Avatar huskie92 
    Participant
    Status: Spouse
    Posts: 105
    Joined: 01/23/2018

    Fixed Additional Matching Contribution: 25% of elective deferrals up to a maximum of 6% of total compensation

    #214296 Reply
    Liked by huskie92, SLC OB
    Avatar FIREshrink 
    Participant
    Status: Physician
    Posts: 1032
    Joined: 01/11/2017
    Earnest refinancing bonus

    It’s not either or. We get MGMA median or more, plus the match.

    #214314 Reply
    Liked by SLC OB
    Avatar ko 
    Participant
    Status: Other Professional
    Posts: 67
    Joined: 02/03/2016

    Does anyone have caps on their matches?  For example with the 6%, it will be 6% of your total salary no matter how high that is?

    Click to expand…

    This is an IRS limit for HCE’s.  $280,000 this year.

    Click to expand…

    My megacorp employer set up a non-qualified plan so that I keep getting the match on all my income above the $280k federal limit. Sure, a non-qualified plan has rules that are a bit different, but it’s still great. But I believe it’s only available to people in the executive level positions.

    #214329 Reply
    Liked by SLC OB, Craigy
    Craigy Craigy 
    Participant
    Status: Spouse
    Posts: 2105
    Joined: 09/16/2016

    Wife’s employer:  2% nonelective, 4% elective.  Up to the HCE limit.  Pretty nice.

    My firm: Usually 10% nonelective “employer” contribution, which comes out of my earnings, in other words, 0% match.  But it does allow me to put more than the $19k into a 401k.

    LEVEL 1 WCI FORUM MEMBER.

    #214339 Reply
    Liked by SLC OB
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1971
    Joined: 02/01/2016

    @spiritrider,
    1) Where your response used 401a, it is a 403(b)(7) .

    i401k (if 1099 so it’s available future).

    Considered Vanguard and Fidelity. Fidelity has more future flexibility is my understanding. That’s eight accounts for one paycheck, seems to make sense to use one vendor. Any problems with Fidelity?

    I should quit while I am blind and behind. You clearly stated 403b for both. It just didn’t take.

    While it is not unheard of for employers to use a 403b plan for employee mandatory contributions and employer contributions. It is more common for them to use 401a plans for those and only use the 403b for the employee elective contributions.

    So you are correct. With the employee elective contributions, mandatory employee contributions and employer contributions all going to the 403b, your total contributions will be limited to $56K. Since they are making employer contributions to the 403b, it will be an ERISA qualified plan.

    Unfortunately as I mentioned earlier, a 403b must be aggregated with all employer plans of businesses > 50% owned by the 403b participant for purposes of the $56K annual addition limit. So if you max out your $56K within the 403b, no one-participant 401k contributions for you.

    No problem with using Fidelity or Vanguard for the 403b accounts. They are probably your best low cost options.

    #214344 Reply
    SLC OB SLC OB 
    Participant
    Status: Physician
    Posts: 610
    Joined: 06/23/2018

    My wife is an internist at a large practice with multiple clinics. ZERO match for any physician. I think it is insane and totally substandard.

    She has repeatedly asked ownership about it and been shot down. They claim this comes from the fact historically physicians there wanted a larger take home income. I think it’s largely BS as she is making MGMA median with no match of any kind to speak of.

    I wish the physicians who are employed by this group would collectively demand this, but not my battlento fight. Thoughts?

    Click to expand…

    That’s a bummer… when I was 1099… they gave us a “benefit stipend” to help pay for health insurance, disability, malpractice, and retirement along with median MGMA. Maybe ask for that? Depended on the specialty (since cost of malpractice is so variable) but for me it was $40K (as a part-time doc).

    #214347 Reply
    Avatar Marko-ER 
    Participant
    Status: Resident, Small Business Owner
    Posts: 147
    Joined: 03/09/2016

    5% match to 272K, 6 year graded vesting.

    Good thread, nice to see the range here.  Please add W2 (employee) vs. not and Academic 501c3 or not.

    #214851 Reply
    Liked by SLC OB, Tim

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