Firms that match 401(k) contributions for associates

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Firms that match 401(k) contributions for associates

Postby Anonymous User » Tue Sep 20, 2016 5:57 pm

I'm at a V50 firm that does not currently match 401(k) contributions for associates. The firm used to match, but rolled it back during the recession.

The Associate Board is going to propose to the firm that they start matching 401(k) contributions for associates.

Can you please reply if you know whether any of the below firms currently match and, if so, at what rate? Thanks:

Allen Matkins
Cooley Godward
DLA Piper
Gibson Dunn
Greenberg Traurig
Holland & Knight
Jones Day
Sheppard Mullin
Kirkland & Ellis
Latham & Watkins
Loeb & Loeb
Mayer Brown
Morrison & Foerster
O’Melveny & Myers
Munger Tolles
Orrick Herrington
Paul Hastings
Pillsbury Winthrop
Quinn Emanuel
Reed Smith
Sidley Austin
Skadden
White & Case
Wilson Sonsini


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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Tue Sep 20, 2016 6:05 pm

Let us know if it works.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Tue Sep 20, 2016 7:50 pm

Munger does. My understanding is that a match, for associates, is rare.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Tue Sep 20, 2016 7:52 pm

Anonymous User wrote:Munger does. My understanding is that a match, for associates, is rare.


Munger Tolles does 3%, and it's capped at a certain value so it doesn't increase after ~year 4. It is a nice built in $6-10k above market comp.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Tue Sep 20, 2016 7:55 pm

I'm going to say every firm you listed matches :D .. I think your firm should do it

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Tue Sep 20, 2016 8:08 pm



OP here. Thanks for posting that. It's over 3.5 years old and a lot can change. It's a good start, but I want to know which firms match, not just the best plans.

Any further information is appreciated!

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Tue Sep 20, 2016 8:22 pm

Milbank Tweed doesn't. They aren't in your list, but given their status as a fast mover on bonus/salary increase matches, it's surprising they don't match 401k contributions

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jbagelboy

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Re: Firms that match 401(k) contributions for associates

Postby jbagelboy » Tue Sep 20, 2016 11:34 pm

Anonymous User wrote:I'm going to say every firm you listed matches :D .. I think your firm should do it


...its not true though. many of those firms don't match.

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Re: Firms that match 401(k) contributions for associates

Postby dixiecupdrinking » Wed Sep 21, 2016 12:03 am

Anonymous User wrote:Milbank Tweed doesn't. They aren't in your list, but given their status as a fast mover on bonus/salary increase matches, it's surprising they don't match 401k contributions

It's really not surprising ... I doubt that even Cravath matches 401ks. It's just not part of the standard biglaw associate compensation. Firms advertise the big headline salary number and then nearly all of them skimp on benefits.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Wed Sep 21, 2016 1:50 am

Anonymous User wrote:
Anonymous User wrote:Munger does. My understanding is that a match, for associates, is rare.


Munger Tolles does 3%, and it's capped at a certain value so it doesn't increase after ~year 4. It is a nice built in $6-10k above market comp.


It is true that Munger does a 401k match. A few important caveats worth noting:

1. You have to work a full year at the firm before the match comes into play. So, let's say you joined the firm without clerking. You wouldn't get it your stub year or your first year. You'd only get this match at the end of your second year during bonus season. (This is meant to be illustrative. The same rule applies to clerks and laterals.)

2. MTO includes this information in its annual bonus memo. In other words, MTO bonuses take this into account. You don't get both a full market bonus and the match. Or at least that has not been the case historically.

So, yes it is nice that MTO does this. But, no, MTO does not pay above market comp. Even factoring the match, MTO pays market.

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Re: Firms that match 401(k) contributions for associates

Postby shock259 » Wed Sep 21, 2016 2:11 am

I don't know of any firms that match.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Wed Sep 21, 2016 8:35 am

.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Wed Sep 21, 2016 1:10 pm

Anonymous User wrote:
Anonymous User wrote:
Anonymous User wrote:Munger does. My understanding is that a match, for associates, is rare.


Munger Tolles does 3%, and it's capped at a certain value so it doesn't increase after ~year 4. It is a nice built in $6-10k above market comp.


It is true that Munger does a 401k match. A few important caveats worth noting:

1. You have to work a full year at the firm before the match comes into play. So, let's say you joined the firm without clerking. You wouldn't get it your stub year or your first year. You'd only get this match at the end of your second year during bonus season. (This is meant to be illustrative. The same rule applies to clerks and laterals.)

2. MTO includes this information in its annual bonus memo. In other words, MTO bonuses take this into account. You don't get both a full market bonus and the match. Or at least that has not been the case historically.

So, yes it is nice that MTO does this. But, no, MTO does not pay above market comp. Even factoring the match, MTO pays market.


I don't think this is true. MTO's median bonuses alone--excluding 401(k) contribution--exceeded the most recent DPW scale all the way up through 6th year associates. Obviously there's some variation and some are making above and some below, but the median associate is making above market in both senses (until year 7).

Not that this matters really for the purposes of this discussion.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Wed Sep 21, 2016 3:25 pm

Sidley does not match.

-Associate

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monsterman

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Re: Firms that match 401(k) contributions for associates

Postby monsterman » Wed Sep 21, 2016 3:31 pm

I'm confused how ATL did an article about firms providing the best 401(k) programs, and yet the consensus seems to be that firms do not match. Is the reality instead that some firms partially match?

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Re: Firms that match 401(k) contributions for associates

Postby RaceJudicata » Wed Sep 21, 2016 4:08 pm

But they all (or at least a lot) match for partners and staff. So that's nice.

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Re: Firms that match 401(k) contributions for associates

Postby axel.foley » Wed Sep 21, 2016 4:09 pm


yost

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Re: Firms that match 401(k) contributions for associates

Postby yost » Wed Sep 21, 2016 4:12 pm

monsterman wrote:I'm confused how ATL did an article about firms providing the best 401(k) programs, and yet the consensus seems to be that firms do not match. Is the reality instead that some firms partially match?


Companies that manage 401(k) accounts (Vanguard, Fidelity, etc.) charge fees to do so, and these fees vary significantly from company to company. A "good" 401(k) program is one with low fees.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Fri Sep 23, 2016 4:54 pm

buckleysandler has a 5% 401k. Not a match, you automatically get 5%.

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Re: Firms that match 401(k) contributions for associates

Postby dabigchina » Fri Sep 23, 2016 5:01 pm

yost wrote:
monsterman wrote:I'm confused how ATL did an article about firms providing the best 401(k) programs, and yet the consensus seems to be that firms do not match. Is the reality instead that some firms partially match?


Companies that manage 401(k) accounts (Vanguard, Fidelity, etc.) charge fees to do so, and these fees vary significantly from company to company. A "good" 401(k) program is one with low fees.

just looking at the list, many of the plans listed on that ATL article seem to be for partners.

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Re: Firms that match 401(k) contributions for associates

Postby bwh8813 » Fri Sep 23, 2016 5:39 pm

Anonymous User wrote:buckleysandler has a 5% 401k. Not a match, you automatically get 5%.


That just means they're taking 5% of your own money and putting it into a 401k for you. Many firms do that. You can opt out of it if you want.

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Re: Firms that match 401(k) contributions for associates

Postby Anonymous User » Mon Sep 26, 2016 10:09 am

bwh8813 wrote:
Anonymous User wrote:buckleysandler has a 5% 401k. Not a match, you automatically get 5%.


That just means they're taking 5% of your own money and putting it into a 401k for you. Many firms do that. You can opt out of it if you want.


This is only half true. It's better than just getting the money and then contributing yourself because I can add more to my 401k now. I get my own 18k limit, plus the 5% whereas otherwise I would only get to contribute 18k.

which means my total tax deffered is 18k + 5% of base. At another firm, you only get 18k tax deferred. A small distinction, but worth a few to several thousands of tax savings.

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Re: Firms that match 401(k) contributions for associates

Postby RaceJudicata » Mon Sep 26, 2016 11:02 am

Anonymous User wrote:
bwh8813 wrote:
Anonymous User wrote:buckleysandler has a 5% 401k. Not a match, you automatically get 5%.


That just means they're taking 5% of your own money and putting it into a 401k for you. Many firms do that. You can opt out of it if you want.


This is only half true. It's better than just getting the money and then contributing yourself because I can add more to my 401k now. I get my own 18k limit, plus the 5% whereas otherwise I would only get to contribute 18k.

which means my total tax deffered is 18k + 5% of base. At another firm, you only get 18k tax deferred. A small distinction, but worth a few to several thousands of tax savings.


Are you sure about this? Fairly certain the max you can defer into a 401k is 18k per year, regardless of the source. Definitely could be wrong though.

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Re: Firms that match 401(k) contributions for associates

Postby unlicensedpotato » Mon Sep 26, 2016 11:06 am

RaceJudicata wrote:
Anonymous User wrote:
This is only half true. It's better than just getting the money and then contributing yourself because I can add more to my 401k now. I get my own 18k limit, plus the 5% whereas otherwise I would only get to contribute 18k.

which means my total tax deffered is 18k + 5% of base. At another firm, you only get 18k tax deferred. A small distinction, but worth a few to several thousands of tax savings.


Are you sure about this? Fairly certain the max you can defer into a 401k is 18k per year, regardless of the source. Definitely could be wrong though.


There's a combined employer/employee contribution limit, but it was $53k for 2015. The $18k limit is for employee contributions.



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