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Posted by Ira on July 30, 2006, 7:48 pm
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Thank you all for your posts.
While I certainly am willing to clarify, I do sincerely hope SOMEONE
can provide the answer.
There has been much debate as to whether I stated the vesting in
error. Of course, I did not.
The best I could find in copyable text, is straight from my plan:
** BEGIN QUOTE **
"We help your retirement savings grow by matching your contributions.
After 12 months of service (at least 1,000 hours), you will receive an
automatic Company match on your contributions to the Plan. The Company
will match 100% of the first 3% of eligible pay you contribute, and
50% of the next 3% of eligible pay you contribute to your SPE Plan
account.
You are always 100% vested in your contributions to the Plan, as well
as any earnings on them. The Company contributions, including Company
match and profit sharing (if any), and any earnings vest according to
the following schedule:
Years of service
0-1 year
0%
1-2 years
25%
3-4 years
50%
4 or more
100%"
** END QUOTE **
At the risk of being repetitive, you get a full match. You only vest
X% based on your years of service. So it sounds like, from the above,
you forefeit back what you dont' get. Kinda like stock options when
company's were doing those in the late 90's.
Since any solution involving only typing in 25% of what they put in is
unworkable, because in a year every single prior transaction would
need to be updated (and 1 year from then, further updated, etc). I am
still hoping someone out there can help.
Thanks!
Ira
>
>> Porter Smith wrote:
>> I have never heard of a plan that works like that. You're saying that
>> the degree of matching depends on length of service? Are you sure?
>
>
>I think you all are talking about the same thing. I've been 100 percent
>vested for more than a decade, so I don't pay close attention to what my
>plan says about that. But I don't think it's uncommon for an employer to say
>you are not vested 100 percent in the EMPLOYER'S contributions until you've
>been there five years. I think that's what the OP is saying. I don't think
>he's saying that the extent of the match changes based on longevity.
>Of course, the OP can speak for himself, so let's see if he does.
>
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Posted by Uncle Fester on July 30, 2006, 8:07 pm
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Ira wrote:
> At the risk of being repetitive, you get a full match.
No, in your plan you only get a full (dollar-for-dollar) match on the
first 3%. And a half match on the next 3%. But that is not your
question, as far as I can tell.
> Since any solution involving only typing in 25% of what they put in is
> unworkable, because in a year every single prior transaction would
> need to be updated (and 1 year from then, further updated, etc). I am
> still hoping someone out there can help.
I showed you how to enter a Percent Vested into your 401k account in
Quicken, so that Quicken can show you an estimate of your vested
balance IF you keep your "Employer Match" fund purchases separate from
your "Employee Contribution" purchases. This is how Quicken can keep
track of your vesting. Is that clear? No, of course you do not want
to edit your old transactions every time your vesting percentage
changes. Why would you want to do that anyway?
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Posted by Ira on July 30, 2006, 8:39 pm
Please log in for more thread options Uncle Fester,
Thank you for the updated corrections. What I meant by full match was
to address all of the questions previously, which stated that they
believed I would get 25% match and be fully vested in it, rather than
the actual 100% of the company contribution being deposit with it
being forefeit based on lack of vesting.
I do note that the account screen does provide for vested amount
(thank you very much). I fear I cannot use this method because I
cannot provide a dollar amount as being deposited by me per paycheck.
I need to rebalance the percentages so that I wind up at the federal
limit by the end of year, while never allowing a paycheck to go below
6% (for the match). As such, the dollar amount needs to change over
the course of the year.
Thank you all for your advice ...
wrotf:
>Ira wrote:
>> At the risk of being repetitive, you get a full match.
>
>No, in your plan you only get a full (dollar-for-dollar) match on the
>first 3%. And a half match on the next 3%. But that is not your
>question, as far as I can tell.
>
>> Since any solution involving only typing in 25% of what they put in is
>> unworkable, because in a year every single prior transaction would
>> need to be updated (and 1 year from then, further updated, etc). I am
>> still hoping someone out there can help.
>
>I showed you how to enter a Percent Vested into your 401k account in
>Quicken, so that Quicken can show you an estimate of your vested
>balance IF you keep your "Employer Match" fund purchases separate from
>your "Employee Contribution" purchases. This is how Quicken can keep
>track of your vesting. Is that clear? No, of course you do not want
>to edit your old transactions every time your vesting percentage
>changes. Why would you want to do that anyway?
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Posted by Uncle Fester on July 30, 2006, 10:56 pm
Please log in for more thread options Ira wrote:
> I cannot provide a dollar amount as being deposited by me per paycheck.
> I need to rebalance the percentages so that I wind up at the federal
> limit by the end of year, while never allowing a paycheck to go below
> 6% (for the match). As such, the dollar amount needs to change over
> the course of the year.
That is not a problem. I have adjusted my contribution percentage
twice already this year, and my Vested Balance in Quicken matches my
Vested Balance at Vanguard, to the penny.
In the paycheck wizard, enter your contribution amount and matching
amount for each paycheck and Quicken will put the cash into your 401k
account appropriately. Then when the money is invested, keep your
Employee and Employer purchases separate as I explained earlier.
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Posted by slb on July 31, 2006, 11:00 pm
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Ira,
I created a separate 401(k) account called Employer 401(k) Match and recorded
the employer contributions there. This way when you receive a statement, the
two accounts equal the statement total. If you want to get fancy for net
worth reporting, you can create a separate "contra asset" acount called "less
unvested employer 401(k) match or some other name to create the "net"
investment amount..
Calculate the unvested amount each quarter and make an entry. When you print
your net worth it should look something like this:
XYZ 401(k) $10,000
XYZ 401(k) Match $3,000
Less Unvested ($2,250)
Obviously, each period you make the adjusting entry your Less Unvested amount
decreases so your Match amount increases.
For those that may have misunderstood the original question, companies often
make matches but do it over a vesting period. If you leave before you're
fully vested, you get your contributions and interest and only the vested
part of the company's contributions and interest. The company keeps the
unvested portion for other plan members. This gives you the "incentive" to
stay until fully vested.
slb
I'm not actually an accountant, I just play one on TV
Uncle Fester wrote:
> Ira wrote:
> > I cannot provide a dollar amount as being deposited by me per paycheck.
> > I need to rebalance the percentages so that I wind up at the federal
> > limit by the end of year, while never allowing a paycheck to go below
> > 6% (for the match). As such, the dollar amount needs to change over
> > the course of the year.
>
> That is not a problem. I have adjusted my contribution percentage
> twice already this year, and my Vested Balance in Quicken matches my
> Vested Balance at Vanguard, to the penny.
>
> In the paycheck wizard, enter your contribution amount and matching
> amount for each paycheck and Quicken will put the cash into your 401k
> account appropriately. Then when the money is invested, keep your
> Employee and Employer purchases separate as I explained earlier.
--------------8119FAF10B97B7C446705C3C
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<!doctype html public "-//w3c//dtd html 4.0 transitional//en">
<html>
Ira,
<p>I created a separate 401(k) account called Employer 401(k) Match and
recorded the employer contributions there. This way when you receive a
statement, the two accounts equal the statement total. If you want to get
fancy for net worth reporting, you can create a separate "contra asset"
acount called "less unvested employer 401(k) match or some other name to
create the "net" investment amount..
<p>Calculate the unvested amount each quarter and make an entry. When you
print your net worth it should look something like this:
<p>XYZ 401(k)
$10,000
<br>XYZ 401(k) Match $3,000
<br>Less Unvested ($2,250)
<p>Obviously, each period you make the adjusting entry your Less Unvested
amount decreases so your Match amount increases.
<p>For those that may have misunderstood the original question, companies
often make matches but do it over a vesting period. If you leave before
you're fully vested, you get your contributions and interest and only the
vested part of the company's contributions and interest. The company keeps
the unvested portion for other plan members. This gives you the "incentive"
to stay until fully vested.
<p>slb
<p><i>I'm not actually an accountant, I just play one on TV</i>
<p>Uncle Fester wrote:
<blockquote TYPE=CITE>Ira wrote:
<br>> I cannot provide a dollar amount as being deposited by me per paycheck.
<br>> I need to rebalance the percentages so that I wind up at the federal
<br>> limit by the end of year, while never allowing a paycheck to go below
<br>> 6% (for the match). As such, the dollar amount needs to change
over
<br>> the course of the year.
<p>That is not a problem. I have adjusted my contribution percentage
<br>twice already this year, and my Vested Balance in Quicken matches my
<br>Vested Balance at Vanguard, to the penny.
<p>In the paycheck wizard, enter your contribution amount and matching
<br>amount for each paycheck and Quicken will put the cash into your 401k
<br>account appropriately. Then when the money is invested, keep
your
<br>Employee and Employer purchases separate as I explained earlier.</blockquote>
</html>
--------------8119FAF10B97B7C446705C3C--
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