Firms that match 401(k) contributions for associates Forum

[Anonymous User]

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

[KMart]

Might want to start here

[Anonymous User]

Let us know if it works.

[Anonymous User]

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

[Anonymous User]

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.

[Anonymous User]

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

[Anonymous User]

Might want to start here

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!

[Anonymous User]

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

[jbagelboy]

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

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

[dixiecupdrinking]

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.

[Anonymous User]

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.

[shock259]

I don't know of any firms that match.

[Anonymous User]

.

[Anonymous User]

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.

[Anonymous User]

Sidley does not match.

-Associate

[monsterman]

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?

[RaceJudicata]

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

[axel.foley]

Susman Godfrey, per their website: http://www.susmangodfrey.com/Careers/Attorneys/#Pane3

[yost]

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.

[Anonymous User]

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

[dabigchina]

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.

[bwh8813]

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.

[Anonymous User]

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.

[RaceJudicata]

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.

[unlicensedpotato]

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.