Post your current employer retirement plan! (if any)

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sawhorse
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Post your current employer retirement plan! (if any)

Post by sawhorse »

As we all know, group employer retirement plans vary a lot. On this board, what seems like a bad plan to one person may seem like a good plan to another.

It would be interesting and helpful to the community to see how your plan compares to others.

Please post the group employer retirement plan of your current employer. If your employer does not provide access to a plan, feel free to add that to the discussion.

*List the fund options and expense ratios. You can also provide a link to a webpage listing the options or a picture of the table of options.

*Indicate the employer match and vesting requirements, if any.

*If there are additional administrative fees on top of the expense ratios, indicate that.

*If your employer offers a pension or ESOP either as the only retirement plan or in addition to a defined contribution option, indicate that.

This should be interesting!
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TXJuice
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Re: Post your current employer retirement plan! (if any)

Post by TXJuice »

I work for my city's county hospital.

Traditional 403b and Roth 403b - I can contribute 18k to each (currently doing 18k to traditional and ~5k to Roth).
- I receive a 6% match after working for 1 year to the traditional portion that vests in increments over a 6 year period - 20% after 2 years, 40% after 3 years, 60% after 4 years, 80% after 5 years, and 100% after 6 years.
- Currently doing: 17% to Vanguard Total Bond Index (ER = .07%), 40% to Schwab S&P 500 Index (ER = .09%), 10% to Fidelity Spartan Extended Market Index (ER = .10%), 33% to Fidelity Spartan International Index (ER = .20%). I have more options, but I only listed the ones I use and have a somewhat decent ER (<.6%).

Pension - They withdraw the same amount as SS, but I will receive ~2x what I normally would from SS (I hope...).
- I cannot claim this until I've worked for 5 years. If I leave early, I can roll over whatever I have into my 403b.
MKP
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Re: Post your current employer retirement plan! (if any)

Post by MKP »

I work for a major corporation, $12 billion in annual revenue.

We have access to a diversified set of funds, including all of your standard index funds along with a good selection of actively managed funds. We are charged $7.50 per quarter in administrative fees. Our company match is 1 for 1 up to 5% and it vests all or nothing within 3 years. I am not going to post all of the funds, but the index funds are similar to VG expense ratios for institutions.
mhalley
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Re: Post your current employer retirement plan! (if any)

Post by mhalley »

I retired last year but my employers plan looked like this:

American Funds Washington Mutual R5 (RWMFX) .34
Schwab S&P 500 Index Fund (SWPPX)2 .09
T. Rowe Price Growth Stock Adv (TRSAX) .92
Goldman Sachs Mid-Cap Value Instl (GSMCX) .74
Morgan Stanley Inst Mid-Cap Growth A (MACGX) 1.0
Loomis Sayles Small-Cap Value Retail (LSCRX) 1.34
American Funds EuroPacific Growth R4 (REREX) .84

First Eagle Overseas A (SGOVX) 1.16
Invesco Equity and Income R6 (IEIFX) .41
Schwab Managed Retirement Trust 2010 III (N/A) .54 for all
Schwab Managed Retirement Trust 2020 III (N/A) 3,4
Schwab Managed Retirement Trust 2030 III (N/A) 3,4
Schwab Managed Retirement Trust 2040 III (N/A) 3,4
Schwab Managed Retirement Trust 2050 III (N/A) 3,4
Schwab Managed Retirement Trust Income III (N/A) 3,4
Columbia Intermediate Bond Z (SRBFX)
Schwab Value Advantage Money Fund – Instl Prime (SNAXX)
Schwab Personal Choice Retirement Account® (N/A)5
Columbia Int bond z .66
Not a bad plan overall, actually improved over the last few years. Kept mostly to pcra xs for some in the s&p. Int and bond were the poorest offerings.
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prudent
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Re: Post your current employer retirement plan! (if any)

Post by prudent »

401K plan only, no pension.
Automatic company contribution of 2%. Match 50% of employee contribution up to 6%. No limit on employee contribution (other than IRS limit). Match applied every 2 weeks so must time contributions evenly over the year to get the best possible matching contribution. Too many funds to list - a couple of index funds, another two dozen active funds with ERs from 0.6 to 1.3.
No fees charged to employees.
Vesting 20% per year.

Self-directed brokerage account available within 401k: $50 annual fee, commissions $19/trade. Stocks/ETFs/Mutual funds only. The SDBA is the way to avoid the high-ER funds.
Five Scoop
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Re: Post your current employer retirement plan! (if any)

Post by Five Scoop »

sawhorse wrote:
It would be interesting and helpful to the community to see how your plan compares to others.

This should be interesting!
To the OP: When you make a post like this, I really think you ought to volunteer such information first.

I have a self directed plan at work and can invest in any Fidelity fund. 3% employer match.
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sawhorse
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Re: Post your current employer retirement plan! (if any)

Post by sawhorse »

Five Scoop wrote:To the OP: When you make a post like this, I really think you ought to volunteer such information first.

I have a self directed plan at work and can invest in any Fidelity fund. 3% employer match.
I agree and was planning to after a few more responses, but since you asked, here are my husband's options. (I'm not currently employed.)

Image

Image

Image

Image

Image

No match. $20 per quarter administrative fee listed in the plan documents, but when he checks his account online, he hasn't seen it deducted, so we don't know if the plan document had a mistake, and we don't want to bring it to their attention in case they didn't realize they were supposed to deduct it. The plan has only been available since April, so maybe they will deduct it at the end of the first full calendar quarter.
Last edited by sawhorse on Sun Sep 06, 2015 7:55 pm, edited 1 time in total.
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LadyGeek
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Re: Post your current employer retirement plan! (if any)

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (Employer retirement plans)

Remember that this is an anonymous internet forum. Those working for large companies may recognize plans posted by other members, i.e. - "Hey, I've got the same plan - do you work for...?"

If you are worried about your employer (or other members) tracking you down, then obfuscate or redact the details. Consider the information posted in the images as well.

Members can edit their posts at any time.
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zaboomafoozarg
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Re: Post your current employer retirement plan! (if any)

Post by zaboomafoozarg »

Pension: 1.5% * years of service * highest 3 years of salary

401k: 100% match to 7% of salary, offers traditional 401k, Roth 401k, or after-tax 401k with in-service rollovers. No administration fees.

The 401k has some nice ERs:
- Total US stock index - 0.03%
- Total US bond Index - 0.04%
- International index - 0.06%
- US REIT index - 0.09%
- TIPS index - 0.06%

And also lets me do mega-backdoor Roth IRA. So with the matches and mega-backdoor, I can put $25k into my 401k and about $30k into my Roth IRA every year.
Last edited by zaboomafoozarg on Sun Sep 06, 2015 8:38 pm, edited 2 times in total.
galectin
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Re: Post your current employer retirement plan! (if any)

Post by galectin »

University employee

Defined contribution plan

TIAA/CREF with lots of options, including low ER index funds.

I contribute 5.5% and the Univ. matches with 8.5%.

I also have a supplemental retirement plan at work with Fidelity that also has a lot of options, including low ER Spartan funds.
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William4u
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Re: Post your current employer retirement plan! (if any)

Post by William4u »

Spouse and I have the same 403b plan. Employer contributes 13% of salary, employee contributes 2.5%. It doesn't get much better!

Optional additional $17,500 annual contribution per person as well. All in low cost Vanguard funds (signal shares, etc.). Lowest ER is -0.02 for VWO. Yes, that is a negative ER, which means we get an extra 2 basis points for investing in VWO. Best ER ever!
Last edited by William4u on Wed Sep 09, 2015 1:20 pm, edited 1 time in total.
ellsbebc
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Re: Post your current employer retirement plan! (if any)

Post by ellsbebc »

I work for a mid-cap 400 with $1B in annual revenue.
- 401k: company contributes .5% for each 1% employee contribution, up to a max of 3% employers contribution (i.e. 6% employee, 3% employer). We have access to Prinicipal funds. Vests 25% each year.
- ESPP with 15% discount with max purchase of 5% of salary
- no pension.

Wife works for a biomedical company.
- 401k: company matches 1:1 up to 3% and .5:1 for the next 3% (i.e. 6% employee, 4.5% employer). She has access to Vanguard funds. Vests 25% each year.
- ESPP with 15% discount
- company is in transition to eliminate pension. In place of pension, she receives a "401k plus" which is a 6% employer contribution, regardless of employee contribution.
texasdiver
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Re: Post your current employer retirement plan! (if any)

Post by texasdiver »

High School teacher:

1. Defined benefit pension plan equal to 2.3% of the average of highest 5 years salaries x # of years worked that is not indexed.

2. NO SOCIAL SECURITY so it is about a wash. One starts out with a higher pension than SS would provide but social security eventually catches up in 10 years or so and passes it.

3. Optional 403(b) plan with no match. We have a choice of over 20 providers mostly bad insurance companies but also Vanguard and Fidelity. I use Vanguard. All of Vanguard's funds are available and there are no management fees, the plan is administered directly by Vanguard.
poker27
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Re: Post your current employer retirement plan! (if any)

Post by poker27 »

I work for a $13B corporation. Match is 50% of first 3k plus typically some profit sharing. No admin fees. We have some great low index funds with fidelity, albeit not a ton of options, but it does cover me.
jcar
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Re: Post your current employer retirement plan! (if any)

Post by jcar »

I'm preparing to retire any week now. I have the following:

401k put in up to 6% with 100% match. Also additional 3% for legacy employee

Also for legacy employee a plan where they put 1.25% per year salary to replace the defined benefit plan they eliminated. I can draw today 890.00 per month for life or lump sum of 149k.

The issue for younger folks is they only receive a 50% match in 401k, that's it.
AlohaJoe
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Re: Post your current employer retirement plan! (if any)

Post by AlohaJoe »

My current retirement plan is:

Employer contributes 9.5% of whatever my salary is to the plan. I can contribute another $30,000 a year before tax, if I want.

There are no vesting requirements.

There are no fund restrictions. I can choose any fund. I can move between fund providers whenever I want.

Many funds have administrative fees on top of their expense ratios but those are transparent and known up front when you choose a given fund.

There is no ESOP but many employees get RSU grants.
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Goldfinger
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Re: Post your current employer retirement plan! (if any)

Post by Goldfinger »

texasdiver wrote:High School teacher:

1. Defined benefit pension plan equal to 2.3% of the average of highest 5 years salaries x # of years worked that is not indexed.

2. NO SOCIAL SECURITY so it is about a wash. One starts out with a higher pension than SS would provide but social security eventually catches up in 10 years or so and passes it.

3. Optional 403(b) plan with no match. We have a choice of over 20 providers mostly bad insurance companies but also Vanguard and Fidelity. I use Vanguard. All of Vanguard's funds are available and there are no management fees, the plan is administered directly by Vanguard.
Like Texasdiver, I'm a teacher, too. Same deal for me, as I invest the maximum ($24,000) via Vanguard in a 403(b) which includes catch-up contributions. Only thing I would add is that as a teacher, one's age combined with years of service must equal 80 in order to avoid the hatchet. I've got another 8 years + this year to reach that magic number. Retire just 1 year before that, and the penalty is huge.

Not exactly golden handcuffs, but handcuffs nonetheless. I put in 14 years in the private sector, so a small SS benefit (see WEP) will be eventually collected.
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Wagnerjb
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Re: Post your current employer retirement plan! (if any)

Post by Wagnerjb »

I retired from a very large corporation six months ago. I was grandfathered into the traditional pension plan. For any newer employees (hired after around 2004), they offer the following:

a) Defined contribution pension plan. The company contributes 7% (this escalates to something like 9% after 10 years of service) and the assets grow at a nominal rate (either 3% or Tbill rate). The employee does not contribute to this plan.

b) 401k plan. The company matches the first 5% dollar-for-dollar. The choices include many Vanguard low-cost funds, especially the Target type funds. (I did not pay attention to the vesting requirements since I had many years of service and it was not relevant for me.)


Best wishes.
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englishgirl
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Re: Post your current employer retirement plan! (if any)

Post by englishgirl »

My 401k has improved significantly in the years I have worked for my employer. They did do away with the match but they only ever paid like 0.75% match anyway, so no biggie. They give a discretionary profit sharing, which normally is around 3% of pay for me. That is paid out twice a year, although as a part-time employee I only qualify for a once a year payout (haven't usually worked the minimum number of hours to qualify when the first payout is made). If not employed when the payout is calculated, then you lose it for the whole year.

When I started with the company, there was one Vanguard fund available (500 Index). There are now 6.
There are a full slate of T. Rowe Price age-based retirement funds. The ER's are about 0.7%.
There are still some expensive managed funds, but meh.

There are random, roughly quarterly administrative fees. This year they've been very low - I paid $0.01 in July, and $0.15 in April. Last year it was more like $1.15 a quarter.
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Re: Post your current employer retirement plan! (if any)

Post by Grt2bOutdoors »

Large corporation, standard dollar for dollar match up to 5%. All major index funds with super low er's costing no more than 5 bps (total stock market, total bond market, extended market index, all world ex-us,) global reit, DFA emerging market core equity, a slew of actively managed funds with average er's of roughly 65-85 bps). Plan has improved over time with inclusion of index funds and permits mega back-door Roth opportunity.
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Re: Post your current employer retirement plan! (if any)

Post by triceratop »

Hi Bogleheads,

Graduate student here. No retirement program, no match, no "earned income" --> no Roth IRA contributions. Everything must be in taxable accounts. :twisted:

At least I can use best of breed funds (Vanguard). :wink:

It looks as if we young people have much to look forward to with real jobs.
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OutInThirteen
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Re: Post your current employer retirement plan! (if any)

Post by OutInThirteen »

Currently doing part-time consulting with a small firm. SIMPLE IRA through Fidelity (many more investment choices than I'd ever need to consider, including all Spartan index funds). Employer matches dollar for dollar up to 3% of pay.
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ofcmetz
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Re: Post your current employer retirement plan! (if any)

Post by ofcmetz »

We have a 403B plan and have 5 providers. VALIC, VOYA, Met-Life, Fidelity, and TIAA-CREF. I use TIAA-CREF and only fee's are what the funds themselves charge. There is no match.

We have a governmental 457B plan. I max this. Fee is 0.18% on first $50,000 plus the fund ER's. It contains many index funds with fee's around 0.1%. There is no match.

Our main plan is a defined benefit pension. There is a mandatory 9.5% employee contribution. The employer contribution changes from year to year and is around 33% of my pay. It pays (3.3%) X (years of service) X (a five year average of my highest consecutive years of pay).
Never underestimate the power of the force of low cost index funds.
terran
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Re: Post your current employer retirement plan! (if any)

Post by terran »

TXJuice wrote: Traditional 403b and Roth 403b - I can contribute 18k to each (currently doing 18k to traditional and ~5k to Roth).
Someone correct me if I'm wrong, but doesn't the $18k legal limit apply accross both Roth and Traditional? Are you sure you aren't adding $5k aftertax which I believe is different from a Roth in that it will be taxed when it comes out? If rollovers are allowed while you're employed it would allow for the so called mega backdoor Roth.
Stormbringer
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Re: Post your current employer retirement plan! (if any)

Post by Stormbringer »

I have a Solo 401(k) so I am currently putting $53,000 a year into it, plus $5,500 into a backdoor Roth-IRA. It's nice, because aside from the large tax-sheltered contributions, I can invest in pretty much anything (I'm using Schwab).

My wife's company is in the process of switching to Fidelity, so the jury is out on that. For some reason her employer limits her contributions to 20% of her income so she is unable to max it out (I wish I knew why). They do match up to 3% of her salary. Her fund choices are pretty awful, with most having fees of 1% or so. I put her in the only index funds they offered, which have a .5% fee. We also put $5,500 into a backdoor Roth for her as well. We used to also max out an HSA, but now her employer imposes a $1000 per year HRA on her, so she doesn't qualify.
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Stormbringer
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Re: Post your current employer retirement plan! (if any)

Post by Stormbringer »

terran wrote:Someone correct me if I'm wrong, but doesn't the $18k legal limit apply accross both Roth and Traditional?
I believe you are correct. $18K a year is all the employee can contribute (the employer could add up to $35K additional) in total. A buddy of mine made the mistake of putting too much in, and it was a pretty nasty mess fixing it once it was discovered.
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zaboomafoozarg
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Re: Post your current employer retirement plan! (if any)

Post by zaboomafoozarg »

Stormbringer wrote:
terran wrote:Someone correct me if I'm wrong, but doesn't the $18k legal limit apply accross both Roth and Traditional?
I believe you are correct. $18K a year is all the employee can contribute (the employer could add up to $35K additional) in total. A buddy of mine made the mistake of putting too much in, and it was a pretty nasty mess fixing it once it was discovered.
The $18k limit is Roth + traditional, but some plans allow employee contributions into after-tax up to the $53k limit. Hence the mega backdoor Roth IRA.
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Re: Post your current employer retirement plan! (if any)

Post by Traveler »

I work for a fortune 100 company
Long tenured employees are covered by a traditional defined benefit plan that is a sweet deal
Newer hires have a defined contribution plan where the company puts in 5, 6 or 7% depending on age and years of service. It's portable.
401K: 3.5% match, reasonably decent fund options with moderate to low expense ratios. I don't think there are other admin fees.
texasdiver
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Re: Post your current employer retirement plan! (if any)

Post by texasdiver »

Goldfinger wrote:
texasdiver wrote:High School teacher:

1. Defined benefit pension plan equal to 2.3% of the average of highest 5 years salaries x # of years worked that is not indexed.

2. NO SOCIAL SECURITY so it is about a wash. One starts out with a higher pension than SS would provide but social security eventually catches up in 10 years or so and passes it.

3. Optional 403(b) plan with no match. We have a choice of over 20 providers mostly bad insurance companies but also Vanguard and Fidelity. I use Vanguard. All of Vanguard's funds are available and there are no management fees, the plan is administered directly by Vanguard.
Like Texasdiver, I'm a teacher, too. Same deal for me, as I invest the maximum ($24,000) via Vanguard in a 403(b) which includes catch-up contributions. Only thing I would add is that as a teacher, one's age combined with years of service must equal 80 in order to avoid the hatchet. I've got another 8 years + this year to reach that magic number. Retire just 1 year before that, and the penalty is huge.

Not exactly golden handcuffs, but handcuffs nonetheless. I put in 14 years in the private sector, so a small SS benefit (see WEP) will be eventually collected.
It appears we are both in Texas. I'm not sure what hatchet you are talking about. If you quit teaching before you reach 80 you just have to wait until your age plus years of teaching equal 80 before you start drawing the pension. The date you quit teaching is not necessarily the same date as when you file for retirement with TRS. And once you reach age 65 you are eligible for regular retirement regardless of the rule of 80 so the 80 rule only kicks in if you are wishing to start drawing pension checks before age 65. I started teaching at age 42 so I reach the 80 number when I am 62 years old. If I quit teaching before age 62 I have to wait an additional year past 62 to start drawing the pension for every year before age 62 that I don't teach until age 65. Maybe that can be a hatchet for some I guess. But it's not like you lose your pension if you quit teaching before you reach the rule of 80.

Yes the WEP is a big clawback. I also have about 15 years in the private sector with social security so we are in exactly the same place I think. Were I not married to a physician I would not be doing this job.
Last edited by texasdiver on Mon Sep 07, 2015 11:39 am, edited 2 times in total.
Emeralds
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Re: Post your current employer retirement plan! (if any)

Post by Emeralds »

NYC Government job

Pension:
The city has 5 different pension funds operating independently from each other. Each one is managed for a particular segment of the city workforce. There are different tiers within the pension system and many special plans that affect certain groups but not others. I contribute 4.85% of gross salary for my pension and will get 50% of final average salary after 25 years of service. I am required to pay FICA tax so I also expect social security payments at retirement.

401k and 457

I can contribute to both. No match. The plan charges $20 per quarter plus an annualized .04% of assets. The fee is the same even if you set up both accounts.
Funds:
Stable income .28%
Bond Fund .24%
Equity Index .01%
Socially Responsible Fund .40%
Mid-Cap Index .04%
International Equity Fund .34%
Small-Cap Equity Fund .42%

401(a)
My union set up a money purchase plan where the city contributes approximately $522 per year into this plan. I am not allowed to contribute my own money into this account.
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TXJuice
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Re: Post your current employer retirement plan! (if any)

Post by TXJuice »

terran wrote:
TXJuice wrote: Traditional 403b and Roth 403b - I can contribute 18k to each (currently doing 18k to traditional and ~5k to Roth).
Someone correct me if I'm wrong, but doesn't the $18k legal limit apply accross both Roth and Traditional? Are you sure you aren't adding $5k aftertax which I believe is different from a Roth in that it will be taxed when it comes out? If rollovers are allowed while you're employed it would allow for the so called mega backdoor Roth.
Believe me, I've looked over my "employment packet" multiple times and talked with representatives from the company that manages our plans because I thought this was the case; however, for some reason we are allowed 18k in each.
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Re: Post your current employer retirement plan! (if any)

Post by LadyGeek »

TXJuice wrote:...Believe me, I've looked over my "employment packet" multiple times and talked with representatives from the company that manages our plans because I thought this was the case; however, for some reason we are allowed 18k in each.
I guarantee that every employer plan has (or should have) some fine print which says "IRS trumps whatever we say here."

See: Retirement Topics - 401(k) and Profit-Sharing Plan Contribution Limits (for employers)
Generally, you aggregate all elective deferrals you made to all plans in which you participate to determine if you have exceeded these limits. If a plan participant’s elective deferrals are more than the annual limit, find out how you can correct this plan mistake.
Background info: Retirement Topics - Contributions
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jebmke
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Re: Post your current employer retirement plan! (if any)

Post by jebmke »

LadyGeek wrote:I guarantee that every employer plan has (or should have) some fine print which says "IRS trumps whatever we say here."
And if the plan doesn't, I'm sure the IRS does. :happy
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jpelder
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Re: Post your current employer retirement plan! (if any)

Post by jpelder »

Hello, fellow teachers! I'm a teacher in NC, so I have a couple of options

Mandatory: 6% of salary goes into state pension, state contributes 15.21%, which vests after 5 years. "Service retirement" comes after 30 years and pays 1.82% of highest 4 salary years times years of service (about 55% of salary), or a reduced amount to get survivor's benefits. This theoretically gets a COLA each year, but must be authorized each time by the General Assembly, so it may be more or less than inflation. I'm also eligible for Social Security.

Options: 403(b) and 457 plans offered by the school district are through AXA, Voya, Valic, Horace Mann, Lincoln Finanacial, or Security Benefits (all have high-fee active funds). The state offers a 403(b) through TIAA-CREF, and directly services a 457 plan. No match to these due to pension plan.

I don't use the 403(b) or 457 plans, since maxing 2 Roth IRAs at Vanguard gives a 20-something percent savings rate for my wife and I, with better fund options than even TIAA. Her employer doesn't have a 40x plan. I'll be opening a TIAA 403(b) once I move up a few steps in the salary scale.
Tamales
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Re: Post your current employer retirement plan! (if any)

Post by Tamales »

TXJuice wrote:
terran wrote:
TXJuice wrote: Traditional 403b and Roth 403b - I can contribute 18k to each (currently doing 18k to traditional and ~5k to Roth).
Someone correct me if I'm wrong, but doesn't the $18k legal limit apply accross both Roth and Traditional? Are you sure you aren't adding $5k aftertax which I believe is different from a Roth in that it will be taxed when it comes out? If rollovers are allowed while you're employed it would allow for the so called mega backdoor Roth.
Believe me, I've looked over my "employment packet" multiple times and talked with representatives from the company that manages our plans because I thought this was the case; however, for some reason we are allowed 18k in each.
Here's what the IRS website says:
"Although permissible to split the annual employee elective contribution between designated Roth contributions and traditional, pre-tax contributions, the combination cannot exceed the deferral limit - $18,000/$24,000 in 2015."

http://www.irs.gov/Retirement-Plans/Rot ... ison-Chart
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just frank
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Re: Post your current employer retirement plan! (if any)

Post by just frank »

I'm a tenured University professor. 403(b) plan only, no pension.

My U contributes in 3,4,or 5% of my gross salary (ramped based on time in company).
They match 100% up to 5% of gross on top of that.

IOW, I put in 5%, they currently put in 9%.

Choice of a reasonable collection of TIAA-CREF (about 20 funds, including TREA, class 3, or whateverr they called the lowest EF) or Vanguard (about 30 funds).
CoAndy
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Re: Post your current employer retirement plan! (if any)

Post by CoAndy »

Work for a local utility.

3% company match on 401(k). Also have access to a 457 plan. Pretty good fund choices. 401(k) is in Vanguard 2035. 457 is in VINIX, HAINX, VAIPX, FIJEX, cash.

Also lucky to have a pension: Rule of 75. When age and years of service equal 75, one gets their pension. Monthly pension checks can start as early as 55. There are rumblings within the company to make tweaks to the pension due to long term sustainability issues, which is understandable. I also pay into SS.
downshiftme
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Re: Post your current employer retirement plan! (if any)

Post by downshiftme »

401k with match at 3% whether you contribute or not.

A motley collection of high priced funds (most ER 1.2% to 2.0%) plus some insurance company (provider) sponsored separate portfolios with ER around 1%. There's a bond index and an SP500 index at 0.6% (the only sub-1% ER funds).

But even this is an improvement over the previous plan with ER between 2% and 3.5% (ouch).

No employee pension, no retiree health insurance or other retirement plan.
DVMResident
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Re: Post your current employer retirement plan! (if any)

Post by DVMResident »

Joined the S&P 500 company 1.5 years ago. There use to a pension, but it's been suspended for new hires and phasing out current employees in 2017.

For new hires: 9.5% to 14.5% match (depending on years of service plus age, +1% per 5 years with the company). Requires 6% contribution for full match. Match applies to annual bonuses (ranging from 5-25% of base salary, depending on rank).

Old employees on pension system: 4.5% match + 1% every 5 years of service. Don't know the pension formula (not easy to find).

VG Target funds (ER 0.17-0.18%) are the dominate feature and the default selection.

Domestic indexes are well represented (S&P500, 0.02%; Russel 2000 0.04%).
International/EM are active funds with Dodge & Cox being the best developed international (0.63%).
Bonds are best replaced by SV fund (0.24%), though there is a Barclays aggregate bond fund (0.42%).

There is also a Fido brokerage account (no ETF/day trading allowed) for no fees to maintain. Standard Fido fees for non-Fido funds apply.
Mega-back door ROTH IRA is available for $20 per transaction. 8-)
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sergeant
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Re: Post your current employer retirement plan! (if any)

Post by sergeant »

ofcmetz wrote:We have a 403B plan and have 5 providers. VALIC, VOYA, Met-Life, Fidelity, and TIAA-CREF. I use TIAA-CREF and only fee's are what the funds themselves charge. There is no match.

We have a governmental 457B plan. I max this. Fee is 0.18% on first $50,000 plus the fund ER's. It contains many index funds with fee's around 0.1%. There is no match.

Our main plan is a defined benefit pension. There is a mandatory 9.5% employee contribution. The employer contribution changes from year to year and is around 33% of my pay. It pays (3.3%) X (years of service) X (a five year average of my highest consecutive years of pay).
It's good to be a safety member of a pension plan!

I too have a 457b plan but through ICMA-RC. I double max this through the Normal Retirement Age option. My employer also contributes 5% of my base salary. Fees are reasonable but not great. They have good index fund options and a decent stable value option.

I have a DB pension plan with an employee contribution of 9% soon going to 12%. It pays (3% at 55) X (years of service) X (my single highest year of pay) up to 90%.
AA- 20+ Years of Expenses Fixed Income/The remainder in Equities.
sschullo
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Re: Post your current employer retirement plan! (if any)

Post by sschullo »

Quite proud to post our 457b plan. It has best in class investments, low costs, 100% fee transparency, diversified choices. Its so good it won an award because teachers and other employees provided input into its creation. We not only selected the funds, but we selected a competent financial adviser and the TPA who both get it about investment costs. LAUSD is Los Angeles Unified School District.

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"We have seen much more money made and kept by “ordinary people” who were temperamentally well suited for the investment process than by those who lacked this quality." Ben Graham
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sawhorse
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Re: Post your current employer retirement plan! (if any)

Post by sawhorse »

texasdiver wrote: 2. NO SOCIAL SECURITY so it is about a wash. One starts out with a higher pension than SS would provide but social security eventually catches up in 10 years or so and passes it.
In that case, do you have the option of contributing to Social Security instead of the pension? (I hope you don't have to contribute to both but only get one!)

What happens if you leave before being vested in the pension--will your pension contributions during that time be converted to Social Security credits?

Does the pension provide surviving spouse and disabled child benefits like Social Security does?

If not, it sounds like a pretty raw deal. :(
texasdiver
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Re: Post your current employer retirement plan! (if any)

Post by texasdiver »

sawhorse wrote:
texasdiver wrote: 2. NO SOCIAL SECURITY so it is about a wash. One starts out with a higher pension than SS would provide but social security eventually catches up in 10 years or so and passes it.
In that case, do you have the option of contributing to Social Security instead of the pension? (I hope you don't have to contribute to both but only get one!)

What happens if you leave before being vested in the pension--will your pension contributions during that time be converted to Social Security credits?

Does the pension provide surviving spouse and disabled child benefits like Social Security does?

If not, it sounds like a pretty raw deal. :(
Back when social security was created there were various state and local governments that already had pension programs and were allowed to opt out of social security. This was the case in Texas and in many other states for teacher and municipal pensions. Many police and firefighter pensions are the same. Basically it means you have zero social security earnings for those years that you work under a separate pension program. Worse yet, social security claws back a portion of your earned social security benefit if you have social security work history as well under something called the Windfall Elimination Provision (WEP).

So I worked for 15 years in another career prior to getting into teaching and have those 15 years of social security work history for which I will earn benefits. Plus I'll have my years of teaching in Texas for which I'll earn the Texas teacher pension. The two combined will hopefully more or less make me "whole" and get me to where I would have been had I been working under social security the whole time.

No, you can't optionally contribute to social security if you are under a separate pension program that doesn't participate in social security because it is a payroll deduction with a matching employer contribution. However there are many school districts and municipalities around the country that do chose to participate in social security as well in which case you'd be earning both social security and the separate pension but also paying into both during your employment years as well.

In my teaching pension I am vested after 5 years. If I leave before that they refund my pension contributions and earnings which I can roll over into an IRA. After 5 years I have the option of getting a pension refund or drawing the pension at age 65 (or earlier if I have enough years of teaching). But under no circumstances can I convert it to social security.

Yes there are surviving spouse benefits. You have about 5 different annuity options. You get a smaller pension amount if you want it to transfer to your surviving spouse upon your death. I think this is pretty standard.
texasdiver
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Re: Post your current employer retirement plan! (if any)

Post by texasdiver »

sschullo wrote:Quite proud to post our 457b plan. It has best in class investments, low costs, 100% fee transparency, diversified choices. Its so good it won an award because teachers and other employees provided input into its creation. We not only selected the funds, but we selected a competent financial adviser and the TPA who both get it about investment costs. LAUSD is Los Angeles Unified School District.
That's nice but here in Texas we teachers have the choice of using Vanguard or Fidelity with no added fees at all. My Texas school district 403(b) is invested directly with Vanguard with the full suite of Vanguard funds available and the only fees I pay are the underlying expense ratios of the funds themselves. I manage my 403(b) account directly through the Vanguard web site just like my Vanguard Roth and Traditional IRAs and they all show up on the same page. We have a dozen or more other high cost advisor-managed options as well. But at least we can use Vanguard or Fidelity directly with no intermediary to vacuum up fees.
daave
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Re: Post your current employer retirement plan! (if any)

Post by daave »

My employer has what I think is a great plan, administered by Vanguard, and extremely low expense ratios.

Matching: 50% of contributes up to the $18,000 limit (so max $9,000 in matching funds).
Fees: $21/year administration fee, fund expense ratios below.
Vesting: No vesting time, you are 100% vested for all funds, including the match, immediately.
Features:
- Brokerage option, with no commissions on Vanguard ETFs.
- After tax 401k contributions permitted, with in-plan rollover to Roth 401k or rollover to a Vangaurd Roth IRA. All can be done online at any time.
Funds:
There are several actively and passively managed funds available, but the ones Bogleheads might be interested in include:

- Vanguard Target Retirement 2010, 2015, ..., 2055, 2060, Income. (0.05%)
- Vanguard Institutional Index (VIIIX). (0.02%)
- Vanguard Extended Market Index (VEMPX). (0.06%)
- Vanguard Total International Stock Market Index (VTPSX). (0.10%)
- Vanguard Total Bond Market Index (VBMPX). (0.05%)
- Vanguard Prime Money Market Fund (VMRXX). (0.10%)
- Vanguard REIT Index (VGSNX). (0.10%)
- Vanguard Wellesley Income (VWIAX). (0.18%)
Bill M
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Re: Post your current employer retirement plan! (if any)

Post by Bill M »

At MegaCo where I worked until two years ago, there were two plans:

Pension plan: in its simplest form, work for the company 30 years and retire at 50% of final pay. There were lots of complexities for working less than 30 years (or more than 30), and collecting payments prior to age 65, but the simple form gives the rough numbers.

Savings plan (401k): They match 2/3 of first 6% of your salary; you could contribute up to 50% of salary, pre-tax up to IRS limit and then after-tax. Various funds available, few with ticker symbols. Expense ratios very low, e.g. Total US Market Index 0.02%, Total International Index 0.04%, company shares 0.02%, various target date funds 0.31%.

Also various 10-yr salary deferral plans, with returns based on Moody's Corporate Bond rate.
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sawhorse
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Re: Post your current employer retirement plan! (if any)

Post by sawhorse »

It's interesting that the people posting here mostly seem to have very nice plans. The plans on average seem quite a bit better than some of the plans posted on the Help with Personal Investments forum. There have been a bunch of truly hideous plans presented there.
Guest9876
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Re: Post your current employer retirement plan! (if any)

Post by Guest9876 »

401(k) which I max out, favoring Roth. Fund choices are pretty good and include VWELX, VTSMX, VGTSX, and others.

And then there's a gratuitous employer defined-contribution plan, which funds once a year based on profits, which ends up being about another 10% of salary per employee, although in theory it could be zero in a given year. This plan has a really bizarre slate of funds, like SEQUX, YACKT, and the T Rowe suite of target date funds.

Finally, for a number of employees there are defined benefit programs, but no rank-and-file employees can opt-in to that program anymore. Legacy and incentives.

EDIT: Also, NO employer match, because the yearly contribution plan serves that function. And I should also mention HSAs are available, with about half the yearly max funded by the employer.
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sawhorse
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Re: Post your current employer retirement plan! (if any)

Post by sawhorse »

texasdiver wrote: Back when social security was created there were various state and local governments that already had pension programs and were allowed to opt out of social security. This was the case in Texas and in many other states for teacher and municipal pensions. Many police and firefighter pensions are the same. Basically it means you have zero social security earnings for those years that you work under a separate pension program. Worse yet, social security claws back a portion of your earned social security benefit if you have social security work history as well under something called the Windfall Elimination Provision (WEP).

So I worked for 15 years in another career prior to getting into teaching and have those 15 years of social security work history for which I will earn benefits.
I hope I understand this correctly. If the Windfall Elimination Provision is greater than the Social Security benefits from your 15 years in your prior career, you get no credit from anyone for those 15 years?
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steve roy
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Re: Post your current employer retirement plan! (if any)

Post by steve roy »

The Motion Picture Industry Health and Pension Plan.

http://www.mpiphp.org/

The above is a multi-employer plan covering 43,000 participants with a

1) Defined Benefit component (from 1953).

2) Defined Contribution complonent (from 1979).

In addition, my employer has a no-match 401(k) administered by Vanguard.
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