401k matching

Nope. A 401(k) is just a way to defer taxes for retirement savings.

 

Yes, it is still a 401(K0 without employer matching. Those are voluntary contributions by the employer.

A 401(k) retirement savings plan allows a worker to save for retirement and have the savings invested while deferring current income taxes on the saved money and earnings until withdrawal. The employee elects to have a portion of his or her wages paid directly, or "deferred," into his or her 401(k) account. This deferment is also known as a "contribution."

401(k) plans are mainly employer sponsored plans; the employer can, as a benefit to the employee, optionally choose to "match" part or all of the employee's contribution by depositing additional amounts in the employee's 401(k) account or simply offer a profit sharing contribution to the plan.

 

Correct me if I'm wrong Spnited but you shouldn't you just put your "savings" in a Roth IRA if your employer doesn't match any?

Yeah, you pay the taxes up front, but you can take the principal you put in out five years after you start it without any penalties while there's always a penalty and heavy taxes for withdrawing from your 401k prematurely.

 

Exactly what ours was until it was eliminated a year ago.

 

That's true. As a more recent employee I was not paying into the pension, nor were several other people in our newsroom. I think it had been several years since that was an option for new employees.

 

We didn't have to pay into the pension. It was an extra benefit given to us.

 

If there's no employer match, the way to go is to max out a Roth IRA before contributing to a 401(k). If there is an employer match, the way to go is to contribute to the 401(k) up to the amount that gets you the maximum employer match, then max out the Roth, then contribute more to the 401(k). The idea is that you'll probably be in a higher tax bracket in the future (and/or income tax rates will be much higher), so it's better to pay taxes now via Roth contributions than to pay them later with the 401(k).

Some employers offer Roth 401(k) accounts, though.

 

Lee's not matching shit right now. I've heard that management is looking into the "low morale" caused by this and wage freezes. The consensus was that beatings will continue until morale improves.

 

Tribune has gone to a 100 percent match up to the first 2 percent you put away.

Then, 50 percent on up to the next 4 percent.

So, if you put away 6 percent, you get 4 percent from Tribune.

 

We're just a small chain of weeklies, but we were recently bought, and the new owners instituted a 100 percent match up to 2 percent. It also allows even us part-timers to take part, so I'm pretty happy right now.

 

This is absolutely correct. Better to get taxed up front then on the back end after it grows and grows and grows.

 

By the time I'm taking that money out, I'm unemployed in a non-existent tax bracket