I have an offer from a lit boutique. Among other questions, I asked whether they match 401K contributions; they responded that they don't but that they offer profit sharing, through I "may be eligible for up to 3% of your salary as profit sharing."
Do any of you work at a firm that offers this? How does the 3% max compare? I am class of 2013, and they pay market, so .03 X $235,000 (my projected 2017 salary) = $7,050.
So if I max my 401K at $18,000, this essentially amounts to a roughly 40% match, right? Am I think about this correctly?
Just trying to weigh all of the factors as I consider a competing offer.
Does your firm offer profit sharing? Forum
Forum rules
Anonymous Posting
Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.
Failure to follow these rules will get you outed, warned, or banned.
Anonymous Posting
Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.
Failure to follow these rules will get you outed, warned, or banned.
-
- Posts: 428117
- Joined: Tue Aug 11, 2009 9:32 am
-
- Posts: 421
- Joined: Thu Feb 23, 2012 11:22 pm
Re: Does your firm offer profit sharing?
Doesn't it make the most sense to just go back and ask them what they mean by that specifically?
-
- Posts: 428117
- Joined: Tue Aug 11, 2009 9:32 am
Re: Does your firm offer profit sharing?
I'd rather not bother them if I can answer my own questions with the assistance of google and this fine community. Besides, I doubt they are in a position to speak to profit sharing at comparable firms...
-
- Posts: 428117
- Joined: Tue Aug 11, 2009 9:32 am
Re: Does your firm offer profit sharing?
My firm (also a lit boutique) has a profit sharing plan, but it operates differently (generally an allocated portion of bonuses). The positive is that it lets you exceed the $18,000 cap on tax-free retirement savings. But the function of the plan will vary by firm (subject only to constraints imposed by the tax rules). Most firms don't offer any match, so 3% is pretty decent.
-
- Posts: 428117
- Joined: Tue Aug 11, 2009 9:32 am
Re: Does your firm offer profit sharing?
Mine offers profit sharing, and tells you that historically it has been anywhere from 8-10% of your base salary, which is extremely generous. Takes 2 years to vest though.
-
- Posts: 428117
- Joined: Tue Aug 11, 2009 9:32 am
Re: Does your firm offer profit sharing?
My firm had it but it took five years to vest so I essentially knew it was useless.
Want to continue reading?
Register now to search topics and post comments!
Absolutely FREE!
Already a member? Login