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June 15, 2012 11:10 AM Subscribe
My 401(k) has changed - any financial gurus able to explain how I am going to be affected?
posted by erstwhile to Work & Money (9 answers total)
My employer is transferring my job to a different company. I am allowed to keep my position, but my direct employer will be changing. As part of this transfer, my benefits package will change, and I have a question about my 401(k).
My previous employer offered 100% matching of 6% total salary, vesting after 4 years. My new employer is offering 50% matching of 6% salary, vesting immediately.
I can do some basic math here and deduct that 50% < 100%, however, I'm not entirely sure of the ramifications of the change in vesting periods, and whether or not I'm actually losing out on much. Additionally, I have received a 1.8% raise as compensation for the differences in my benefits. The change to my other benefits is negligible, so I'm assuming that this increase is mostly a result of the change to my 401(k).
I know that I'm just going to have to accept this change for what it is, considering that putting money into a 401(k) seems to have a very high ROI, even if it's only 50% versus 100%. But it would be nice to get a little perspective on my situation from someone that may know more about this than I do.
Thanks for any insight!