Estes | 401k information?

[Dikweed]

They don’t match anything past 7% so yes the match (their contribution) does max out at 3.5%. If you put in 20% Estes puts in 3.5%, which is half of 7%. You must have went to school in the common core era.

They do match if you choose the Roth option, but the match is not “rothed”. It goes into a traditional 401k. Your roth contributions are taxed going in but won’t be coming out. The company’s contributions are treated as a traditional 401k contributions and will be taxed when you draw them out.

Nowhere in their literature do they say anything about "3.5"%. The 3.5% is simply multiplying 50% times 7% which is 3.5%. The 7% they are talking about is your weekly income. The 50% is half of what you put in it. The 3.5% formula works out right up to a certain point. When you start putting big money in it, there is a breaking point. I max mine out every year. I can put in 30,000$ in a year. That comes out to 29% of my weekly income of 2000$ which is 576$/wk. They won't put more in than 7% of 2000 which is 140$. . 3.5% of 2000$ is 70$