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Old 01-18-2020, 12:25 PM
 
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Quote:
Originally Posted by jnojr View Post
???

You very badly need to look up the definition of a 401(k). You literally have no idea what it is.

Not taking advantage of the company match is giving up part of your paycheck. The company match isn’t free money at all. I don’t need the look up the definition of a 401k because I know what it is and it is irrelevant to my point
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Old 01-18-2020, 04:00 PM
 
742 posts, read 315,779 times
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Quote:
Originally Posted by Lowexpectations View Post
It’s much worse than free money. It’s giving up part of your pay check back to the company, it’s not free but you’d be giving back to the company otherwise
You are not giving the company your money in a 401k. The only thing that can go back to the company is the unvested portion of the company match, in the event you leave employment (prior to the vesting date). The company cannot take a single dime of what you put in.
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Old 01-18-2020, 04:10 PM
 
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Quote:
Originally Posted by Jim1921 View Post
You are not giving the company your money in a 401k. The only thing that can go back to the company is the unvested portion of the company match, in the event you leave employment (prior to the vesting date). The company cannot take a single dime of what you put in.
You are giving your money back to the company by not taking advantage of the company match. The company match isn’t free money, it’s compensation your employer has planned to give you and if you don’t take it, it’s money you give back to them. Everyone that says the 402k match is “free money” doesn’t fully understand what it actually is
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Old 01-18-2020, 05:20 PM
 
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Quote:
Originally Posted by Lowexpectations View Post
You are giving your money back to the company by not taking advantage of the company match. The company match isn’t free money, it’s compensation your employer has planned to give you and if you don’t take it, it’s money you give back to them. Everyone that says the 402k match is “free money” doesn’t fully understand what it actually is
The company hasn’t actually “planned” to give it to you. They have budgeted an amount based on the historical participation rate, but it is merely a budget. It has not left the pocket of the company until you trigger the match via your contribution. Thus, if you haven’t signed up and contributed, there is nothing for the company to “take back”.
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Old 01-18-2020, 05:24 PM
 
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Quote:
Originally Posted by Jim1921 View Post
The company hasn’t actually “planned” to give it to you.
But they have planned on it

Quote:
They have budgeted an amount based on the historical participation rate, but it is merely a budget.
So they have planned on it? Thank you

Quote:
It has not left the pocket of the company until you trigger the match via your contribution. Thus, if you haven’t signed up and contributed, there is nothing for the company to “take back”.
Sorry if you don’t take advantage of the contribution it is a decrease in your planned compensation and money back i your employer’s pocket. Try to slice it any way other than that and you are describing a falsehood
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Old 01-18-2020, 05:56 PM
 
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Quote:
Originally Posted by Lowexpectations View Post
But they have planned on it



So they have planned on it? Thank you



Sorry if you don’t take advantage of the contribution it is a decrease in your planned compensation and money back i your employer’s pocket. Try to slice it any way other than that and you are describing a falsehood
The budget of a company only factors those that typically contribute. To the opposite, it excludes those that don’t typically contribute. Further, a budget is merely a plan. No money has left the pocket of the company until something happens to trigger a payment. Again, there is nothing to “take back”.
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Old 01-18-2020, 06:10 PM
 
19,870 posts, read 14,482,788 times
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Quote:
Originally Posted by Jim1921 View Post
The budget of a company only factors those that typically contribute. To the opposite, it excludes those that don’t typically contribute. Further, a budget is merely a plan. No money has left the pocket of the company until something happens to trigger a payment. Again, there is nothing to “take back”.

So please tell me if your employer offers you a dollar with no work involved and you don’t accept are you giving up a dollar of compensation? The answer is yes. If you are offered a dollar you don’t accept are you essentially giving it back to whom offered it? The answer is yes. I’m not sure what you are arguing here. 401k marching isn’t free money, it’s calculated part of your compensation and if you choose not to take it, it goes back to the company end of story
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Old 01-18-2020, 06:11 PM
 
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I cringe inside every time I hear 401k matches described as “free money”.
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Old 01-18-2020, 06:31 PM
 
742 posts, read 315,779 times
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Quote:
Originally Posted by Lowexpectations View Post
So please tell me if your employer offers you a dollar with no work involved and you don’t accept are you giving up a dollar of compensation? The answer is yes. If you are offered a dollar you don’t accept are you essentially giving it back to whom offered it? The answer is yes. I’m not sure what you are arguing here. 401k marching isn’t free money, it’s calculated part of your compensation and if you choose not to take it, it goes back to the company end of story
Please tell me that the employer transfers money to somewhere else and then takes it back when you decide to not contribute to your 401k. It doesn’t work that way, right? To repeat it one more time: they are not talking anything back. Take a few minutes and re-read your comments and my responses.
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Old 01-18-2020, 07:39 PM
 
19,870 posts, read 14,482,788 times
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Quote:
Originally Posted by Jim1921 View Post
Please tell me that the employer transfers money to somewhere else and then takes it back when you decide to not contribute to your 401k. It doesn’t work that way, right?
No you are correct on that point

Quote:
To repeat it one more time: they are not talking anything back. Take a few minutes and re-read your comments and my responses.
I didn’t say they were taking anything back. What I said is it’s not free money. It’s not free money. Your employer has accounted for the employer match as part of your compensation package. If you accept it, they have planned for it. It’s not “free” money as it’s been accounted for by your employer as compensation to you even if you don’t take it. Should you choose not to take any of your elective compensation you are giving it back to your employer(since they anticipate you taking it) instead of taking it for yourself.

My point should be clear and the fact you continue to try and argue against suggest you don’t understand a very basic concept of total compensation
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