What is your retirement number...and what do you do when you reach it?

[StormRichards]

I know you get that if you work for any of the top banks.

There are a couple of top banks at 6%, but many of the top banks cut their contribution. At least as a typical employer match.

My top bank employer will match up to 5%. It was previously 6%. I did a quick search on a few others.

BOA was also 5%
Chase is 5% at year end, so if you are no longer employed you receive nothing.
Citibank is 6%
Regions is 4%
U.S. Bank is 4%
Wells Fargo is at 6%

A couple of the banks I sampled also provide a 2% contribution regardless if you participate. In order to receive this contribution, you have to be employed with the company at year end.

[Nutria]

Chase is 5% at year end, so if you are no longer employed you receive nothing.
...
A couple of the banks I sampled also provide a 2% contribution regardless if you participate. In order to receive this contribution, you have to be employed with the company at year end.

The company which purchased the division I work for does that, but I don't know how it's legal (especially if they terminate you in December).

Legal or not, it's Wrong.

[corn18]

The company which purchased the division I work for does that, but I don't know how it's legal (especially if they terminate you in December).

Legal or not, it's Wrong.

401k's are a benefit, not a right. If you don't like it, you can find a job somewhere else that has the benefits you desire. The company you leave may not care, but if they lose enough good employees, they will change their policy.

[StormRichards]

The company which purchased the division I work for does that, but I don't know how it's legal (especially if they terminate you in December).

Legal or not, it's Wrong.

I am going to trust Tom regarding the legality of it, but I do think a company could end up with some legal headaches for December terminations. Although 2% isn't a huge amount, if you know you are going to get it in a couple weeks and you are handed a pink slip is going to sting a bit. That contribution might not be a legal basis (no idea on this one) for a lawsuit, but I think a December termination would give an employee incentive to come up with a legal basis.

[StormRichards]

On the topic of the 2% year end contribution and December terminations, I actually know a woman that retired late last month. I'm certain she made over 6 figures. All I could think was "you can't make it another week to cash in on the extra $2k+?"

[corn18]

I am going to trust Tom regarding the legality of it, but I do think a company could end up with some legal headaches for December terminations. Although 2% isn't a huge amount, if you know you are going to get it in a couple weeks and you are handed a pink slip is going to sting a bit. That contribution might not be a legal basis (no idea on this one) for a lawsuit, but I think a December termination would give an employee incentive to come up with a legal basis.

Good point. While it may be legal, a lawsuit is a pain that companies want to avoid, so December terminations would be avoided. I know we avoid terminating folks right before bonus and stocks hit in February for this very reason. A. it's the right thing to do and B. it avoids unnecessary wrongful termination lawsuits.

[StormRichards]

Good point. While it may be legal, a lawsuit is a pain that companies want to avoid, so December terminations would be avoided. I know we avoid terminating folks right before bonus and stocks hit in February for this very reason. A. it's the right thing to do and B. it avoids unnecessary wrongful termination lawsuits.

My employer laid people off the Monday following Black Friday. So clearly you work for a better company than I do. The Monday after people traditionally overspend for the holidays. Mind boggling to me.

[Nutria]

My employer laid people off the Monday following Black Friday. So clearly you work for a better company than I do.

And a smarter one. Friday afternoon layoffs are the way to go, since otherwise the remaining people spend the next 4 days kvetching about the unfairness and whether they'll be next...

[LivingAlmostLarge]

Um my DH's old company was 100% vesting on 401k match of 200% on the first 3% of income. So basically 100% match on 6%.

Anyway they never do layoffs in our old sector on Friday. Always on Thurs. To give people time to get in line for unemployment. Told to me from my friend in HR. Monday and Tuesday to get in order and not piss people off and stew all week. Thursday gives them Friday to call unemployment and deal with it. Then they weekend to cool off.

The worse was a friend who came to work and tried to badge in. Too bad his badge didn't work anymore. That was their notice to their worker. Very classy.

[Nutria]

Anyway they never do layoffs in our old sector on Friday. Always on Thurs. To give people time to get in line for unemployment. Told to me from my friend in HR. Monday and Tuesday to get in order and not piss people off and stew all week. Thursday gives them Friday to call unemployment and deal with it. Then they weekend to cool off.

Blue collar?

[Captain Save]

Before tax, obviously.



If you have any sort of functioning neurons, you're going to protect your nest egg no matter what!



Hmm, let's see: if I need more income, I need a different number? SHOCKING!!

NO ...let's 2 people needing the same amount of income .. and this is just an example since most of you guys know about 401k and Roth .. 1 is all in a ROth and one is all in a 401k ... they will have different numbers..

so with that said.. if you have both .. depending on how much of your funds are allocated in a 401k or a roth . .. your number might be different ..

[Nutria]

NO ...let's 2 people needing the same amount of income .. and this is just an example since most of you guys know about 401k and Roth .. 1 is all in a ROth and one is all in a 401k ... they will have different numbers..

Because Roth money is already taxed? (That just means you had to work much harder to get "your number".)

[GoodSteward]

My 401k is now a roth(left the original 10k as a traditional).

My friend works as a web site designer for a company, and that company isn't massive. They have a 100% match up to 6%. I explained what that meant, and she upped hers to 6%. Too much free money to not take.

[Captain Save]

Because Roth money is already taxed? (That just means you had to work much harder to get "your number".)

what is your point??

the fact remains that your number would be different.. besides .. roth is just an example

someone who has a cd's had a diffrent number
a Cash value life insurance as a different
someone who owns an Annuity has a different number
someone who wants to buy bonds has a different number

[StormRichards]

There's an income requirement. I don't know the limits, but it is pretty low. Even with tIRA, I've been putting in post-tax money into it for years because there's some sort of limit there too (wife doesn't put $ into her IRA because of it).

I am really shocked (and frustrated) that no one else has called you out for your absurd comments on Roths. You commented that most people are locked out of Roths due to income when the limits are $118k for individuals and $186k for couples. According to Census data, only 26.3% of HOUSEHOLDS make over $100k. Carving up the data further would significantly reduce the percentage for households that would be locked out of a Roth.

Yet you make a comment that most are locked out early. This is just another example of you not being in touch with reality when it comes to the financial situations of the majority of the population.