Hello - I’m no math wiz (as you’re about to see for yourself) but I have a problem that has me and my wife thouroughly stumped. I have a new job opportunity and I can’t figure out how much more I should ask for to account for the difference in their 401k matching. First world problems, I know. For ease of doing things let’s forget about tax rates and just play with pre tax numbers
my current salary is $90,000. My current company matches my 401k contributions up to 6%. 6% of 90k is $5400, so my company would also put in 5400 for a total of $10,800 a year.
The new company salary is $120,000 (yay!). They match 60% of the first 6%. 6% of 120k is 7200. 60% of 7200 is 4320, so total contributions are $11,520 a year.
I know now that the overall contributions are higher, but here’s the question - how much more should I ask for from the new company (total salary) to make up for the difference in contribution percentage?
my current salary is $90,000. My current company matches my 401k contributions up to 6%. 6% of 90k is $5400, so my company would also put in 5400 for a total of $10,800 a year.
The new company salary is $120,000 (yay!). They match 60% of the first 6%. 6% of 120k is 7200. 60% of 7200 is 4320, so total contributions are $11,520 a year.
I know now that the overall contributions are higher, but here’s the question - how much more should I ask for from the new company (total salary) to make up for the difference in contribution percentage?