Military Significant Others and Spouse Support - MilitarySOS.com
Results 1 to 3 of 3

Thread: 401k explanation help

  1. sassypants
    WiggleWiggle~'s Avatar
    WiggleWiggle~ is offline
    sassypants
    Join Date
    Nov 2010
    Location
    Encinitas
    Posts
    8,499
    #1

    401k explanation help

    Advertisements
    So, I just got a job offer out of college and I have no idea what I am doing when it is coming to the benifits. It sys this in my offer

    Each quarter a 3% Safe Harbor contribution is made to your 401K.


    The 3% is based on wages you receive after becoming an eligible participant.


    The contribution is made approximately 2 months after the end of the quarter and is 100%
    vested.

    I have no idea what this means. Does it mean that they match to 3%? or does it mean I need to do nothing and they give the 3% of the value of my paycheck to either a roth IRA or 401k (I have that option too, and I have NO idea what to do )

    any explanation would be helpful
    rocket_liz is my wifey
  2. Senior Member
    PaUSMC's Avatar
    PaUSMC is offline
    Senior Member
    Join Date
    Mar 2016
    Posts
    655
    #2
    Don't be afraid to ask your HR department for an explanation of these benefits! That is their job. I read this to be an automatic 3% contribution (not a match program), you may need to be employed for a year to be an 'eligible participant'. Vested means that you don't have a minimum number of years to work to get 100% of that money, meaning it is all yours right away. If you have the option between a roth IRA and 401k there are a bunch of differences (and you should do some reading), but the big things are roth IRA is very limited in the amount you can contribute. I think its only $5K a year for an individual while a 401k is much more, like three times. Both have tax advantages, but the 401k has a mandatory retirement withdrawal while the IRA can be left intact into retirement (and passed on). There will also be differences in the investment options you have between the two. I use both for my retirement planning. Good luck, and congrats on the new job!
  3. Senior Member
    Guynavywife's Avatar
    Guynavywife is offline
    Senior Member
    Join Date
    Aug 2007
    Location
    Maryland
    Posts
    19,311
    Blog Entries
    2
    #3
    Quote Originally Posted by PaUSMC View Post
    Don't be afraid to ask your HR department for an explanation of these benefits! That is their job. I read this to be an automatic 3% contribution (not a match program), you may need to be employed for a year to be an 'eligible participant'. Vested means that you don't have a minimum number of years to work to get 100% of that money, meaning it is all yours right away. If you have the option between a roth IRA and 401k there are a bunch of differences (and you should do some reading), but the big things are roth IRA is very limited in the amount you can contribute. I think its only $5K a year for an individual while a 401k is much more, like three times. Both have tax advantages, but the 401k has a mandatory retirement withdrawal while the IRA can be left intact into retirement (and passed on). There will also be differences in the investment options you have between the two. I use both for my retirement planning. Good luck, and congrats on the new job!
    All this! Spend time with hr. Have them explain it all.
    2 items though...
    Roth ira now maxes at 5500 a year.
    You should max out your retirement plans eachieve year, no matter what.
    If you want my opinion on your relationship or life issues, just ask Villanelle!
    Quote Originally Posted by LittleMsSunshine View Post
    I think it's really funny when people come on here, and automatically assume that everyone here is a gung-ho, hoo-rah, i-bleed-red-white-and-blue, kiss-my-military-ass, people-in-uniform-can-do-no-wrong, and i'm-entitled-to-everything bitch.
    "RIP Blackie, and Whitey, New Whitey. Goodbye Poopers and Momma Beige and Lady Grey. New Blackie and the Whitey Sisters rule the roost now!"

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •