• MeatRobot@lemmy.world
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      1 year ago

      It’s a straight up contribution. For every dollar paid in wages, the company also contributes ten cents to the employees 401k. No employee contributions are required.

      • Norah - She/They@lemmy.blahaj.zone
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        1 year ago

        This is kind of wild to me. In Australia we have a similar thing called Superannuation. Everyone is entitled to 11% from their employer, going up to 12% by the 1 July 2025. Unions bargain for agreements with extra contributions on top of that base percentage.

        • Asafum@feddit.nl
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          1 year ago

          “Everyone is entitled to 11% from their employer”

          That sounds an awful lot like a socialism and from what I’ve been told just doing a socialism once will bring a dictator to your door who will genocide your entire population.

          F’s in chat for Norah. :(

        • quicksand@lemm.ee
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          1 year 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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            1 year 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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              1 year 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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                1 year 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.

        • prole@sh.itjust.works
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          1 year ago

          Based on what someone else said, this isn’t a match but a straight up contribution. So if that is to be believed, it’s even better…

          • MeatRobot@lemmy.world
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            1 year ago

            From the supplemental agreement regarding the personal savings plan (exhibit G, available at uaw.org/gm2023)

            “The Company shall increase its contribution to an Eligible Employee’s Account from 6.4% to 10% of each such Employee’s Eligible Weekly Earnings with such increase to be implemented by December 31 2023, with contributions made retroactive to October 23, 2023”