Unless I read it wrong, when I just logged into the Empower 401k website -- popup message announces a 1% match vs. the 6% promised earlier this year and you have to stay the 1st quarter of 2022? Whaaaaaaaat ??
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If you make over 150 TVC there is 0 profit share. Thanks guys
No this isn't really happening. Match is still up to 6%. The new base contribution is limited to lower paid employees making less than $75K and the discretionary contribution (formerly called profit sharing) is up to 4%. I'm not complaining about WF giving me money to save for retirement. Plenty of other stuff to complain about, but our 401(k) Plan is the only way I will be able to afford to retire. My brother has no 401(k) Plan and no savings. Our futures will be vastly different.
Should match more frequently. Lost a 26% gain in the sp500 waiting for a match.
Interesting info. I wish they'd give the execs more, so we could finally get some profit sharing!
Not true. The discretionary profit sharing 0-4% thing came along after they froze the pension plan, aka The Cash Balance Plan. It wasn't a thing before 2008-2009.
As a former 401k retirement plan administrator for big companies like Wells, I can tell you that the money they give to the lowly employees, including the 401(k) match, is because they have a private profit sharing plan going to the executives.
The IRS limits the amount that they can fund executive deferred compensation plans to an amount based on how much retirement benefit is going to the rank-and-file employees.
So that 1% they're giving out is because they're giving out BIG MONEY to the few people at the top in tax-deferred compensation. It's not because they're good people.
Companies would give me, every year, a dollar figure they wanted to put total in the 401(k) and 401(b) (profit sharing) plans, and I would use algorithms to show them the minimum amount they have to give to each employee they didn't care about.
A VERY SMALL NUMBER of employers, an insignificant fraction, did occasionally want me to not do that and instead they actually directed me to give more to their non-executives. I believe it was actually one, a shipyard in San Diego.
Thanks so much for the clarifying, I can't read. Logged back in to see it again but not there.
The firm has always had the ability to give 0-4% in discretionary 401k. They just have given 0% the last couple years for those over 75k. One year we did get 2% though
That pop-up message is alarming, but poorly-stated and misleading. 6% match remains, employees under $75k get another 1% automatically. Additionally, the firm “may” give up to another 4%. This is the first year of that so let’s see if it happens, and to whom.
People making less than $75k per year get an additional 1% now awarded at the end of December. This is separate from the 6% match and given regardless of whether you participate in the 401k or not by making your own contributions.
You read it wrong. The base comp contribution thing is basically more free money for low comp employees. Our match is still dollar/dollar up to 6%.