401K stuff

Discussion in 'Dayton' started by bubs, Dec 29, 2017.

  1. bubs

    bubs Active Member

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    I know I can contribute to my 401k but how many years do you have to have until the company makes a matching contribution? What is the max contribution amount or percentage? Thanks
     
  2. coondogg

    coondogg Freight Herder

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    I think I got the match as soon as I was eligible for the program itself, but the catch is that the company's contribution is all dumped in at one time each year. I'm pretty sure it's in March, after they close the books on the previous year and figure out the percentage. It's historically around 21%. I think it coincides with the time they give out the 2nd round of profit sharing checks.

    They will match on every dollar up to the current max of $18,000/yr on traditional 401k plans. Side note - people over 50 can contribute $24,000/yr, but the company match tops out when you hit $18k. If you can somehow slam that kind of dough in there, you can get around $3,780 from the company.
     
  3. bubs

    bubs Active Member

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    Hmmm... I never got a damn thing this last year. I guess we will see this spring
     
  4. vongrimmenstein

    vongrimmenstein Well-Known Member

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    Do a Roth. Come retirement time your with drawl from a Roth you will not be taxed &you will be glad you did. What is the diff. With a Roth you have already paid the tax on the income you earned to deposit in to Roth. No taxes when you cash in. von.
     
  5. coondogg

    coondogg Freight Herder

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    Hell, I thought it worked that way, but I can't remember exactly. I'd have to look up my Fidelity statements to find out for sure.

    Every call I've made to corporate with a similar question, they've been helpful directing me to the person who knows. I've asked our terminal manager similar questions, and if he doesn't know for sure, he'll call corporate immediately. I'd go that route.

    How long have you been at Dayton?
     
  6. vongrimmenstein

    vongrimmenstein Well-Known Member

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    I would have a Roth & not a 401k. Consider the tax issue & then rate of return. And if you use a company's 401k they control what happens to that money & investment strategies not you. You have no say in how that 401k retirement fund is managed by you company. If, your company goes bankrupt here is what might happen. Von.

    http://www.401khelpcenter.com/401k_education/bankruptcy_and_401k.html#.Wkgz6TdG2Uk
     
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  7. coondogg

    coondogg Freight Herder

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    I get that argument, and I've tried to find out the "right answer" to the Roth vs. Traditional question, but nobody seems to have a definitive answer.

    One opinion I've heard in favor of Traditional over Roth is that most people are in a higher tax bracket during their working years, so you're theoretically going to save more money when you defer taxes on your contributions if your income in retirement is going to be say half of your income during your working years.

    But I have no idea, really. It could all change if a future Congress and President choose to raise taxes or let the recently passed ones expire (which is inevitable).
     
  8. coondogg

    coondogg Freight Herder

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    Luckily that's not an issue here. There are many types of investment funds to choose from, including index funds and bond funds, not just stock-based mutual funds, and the employee has full control over which funds to allocate their contributions to (or to opt out altogether). Also, the company doesn't control the administration of the plan itself. It's all set up through Fidelity. The employee owns the account, not the company.

    That article mentioned a scenario where an employee of a bankrupt company could lose their vesting of the company's match contributions. If I could picture Dayton Freight going bankrupt within the next few years, I might be concerned about that, but I think we're pretty safe there.

    Another thing is that the 401k plan allows for Roth (after-tax) as well as Traditional (pretax) contributions. So in that way it can be set up just like a Roth IRA if so desired.
     
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  9. vongrimmenstein

    vongrimmenstein Well-Known Member

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    Good response. I also believe Dayton is the most stable LTL Carrier out there. My ex-neighbor, April, has worked in Indy for 20 years. Always spoke well of Dayton. + the drivers @ Dayton comment on their company all the time. All happy campers over there. von.
     
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  10. dokman

    dokman Active Member

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    Here is some info in regards to 401k.
    Do google search on investment calculator and play with some numbers and get putting money away right now. Trust me only regret you will have is I should have put more away.

    No matter where you go there will be fees. Anyone is wise to start 401k unless you are very near retirement, here are reasons why.

    1. Roth Ira has a $5,500 limit for under 50 years old $6,500 for over 50 all money goes in after tax.
    2. Ira has same limits as Roth, but will go in pre tax.
    3. 401k has $18,000 limit under 50 and $24,000 limit over 50 and goes in pre tax.

    It is wise to invest in both 401k and roth. 401k money will be tax at your tax rate at retirement.Roth grows tax free.
    Nice thing with Roth is you can withdraw principal money not growth money if an emergency arises.

    If you put $10,000 in a 401k you will not pay any tax on that money when put in, so the 15% that would go to Uncle Sam stays in account and grows instead of going in Uncle Sams pocket.

    There are several web sites that you can find online to see how much 401k money will grow just Google
    401k INVESTMENT CALCULATOR.
    The young guys really need to get seriously thinking NOW about retirement for thee reasons.

    1. Don't count on any pension.
    2. Don't count on Social Security.
    3. Don't wait the longer you wait the bigger the burden, find a web site calculator and start playing with the numbers, you will be shocked what $100 a week for 30 years will do.

    One more thing is if your spouse has a 401k with match, consider maxing out theirs to get the match.
     
  11. dokman

    dokman Active Member

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    A Roth IRA is a good way to save for your kids college education, all money put in can be taken out with out penalty, you just can't take out the growth. 529 plans are great but if kid gets full ride or goes in military or decides not to go that money is tied up.
     

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