Qu'est-ce que le Meta 401(k) Employer Match ? (2024)

FAQs

Qu'est-ce que le Meta 401(k) Employer Match ? ›

Meta will match $1 for $1 of your 401(k) contribution up to 50% of the IRS Federal elective deferral limit. Your employer match from Meta is essentially free money. We encourage you to make the most of this benefit by maxing out your 401(k) contributions before utilizing any other benefits available to you.

How Much is the Employer Match? Meta will match your 401(k) contributions dollar for dollar up to 50% of the IRS Federal limit. In 2024, if you are under 50 years old, Meta will match up to $11,500.

A 401(k) match is when your employer contributes money in your 401(k) account to reflect the contributions you've made out of your compensation, like salary and bonuses. Other employer retirement plans, like a 403(b), work the same way.

Q: What does a 6% 401(k) match mean? A: This means that the employer is matching up to a total of 6% of an employee's overall compensation to his or her 401(k) account on top of what the employee is contributing. So, if an employee is earning $50,000 per year, the employer's match would not exceed $3,000.

For example, if your employer matches up to 3 percent of your gross income, multiply your gross income by 3 percent (. 03) or the amount of your personal contribution if you contribute less than 3 percent of your own compensation. Pay attention to the maximum amount your employer contributes.

Saving for retirement is crucial, yes, but you shouldn't max out your contributions if it means underpaying your mortgage or not having an emergency fund. That's especially true if you don't think you'll stay with the company long enough to have it fully vested. After all, this would reduce the benefit of matching.

A study by Vanguard reported that the average employer match was 4.5% in 2020, with the median at 3% of salary. In 2023, if you're getting at least 4% to 6% in 401k employer matching, it's considered a “good” 401k match. Anything above 6% would be considered “great”.

In some cases, you can leave a job and take your 401(k) matching dollars with you. If your 401(k) is subject to a vesting schedule, you might have to give up some of that free money from your employer when you jump ship. It's best to move your 401(k) funds into a new plan when you change jobs, lest you forget about it.

Under federal law, an employer can take back all or part of the matching money they put into an employee's account if the worker fails to stay on the job for the vesting period.

If your 401(k) has less than $1,000 when you quit a job, the IRS allows the plan administrator to automatically withdraw your money and send you a check, minus 20% in taxes, per the IRS. You can also initiate a rollover: a direct transfer of your money from a 401(k) account to another tax-advantaged retirement account.

How do I calculate my 401K employer match? ›

Typically, the formula for calculating a matching contribution is based on a percentage of salary deferrals up to a specified compensation limit – for example, 50% of salary deferrals up to 6% of the employee's eligible compensation – for a 3% maximum match.

The IRS allows penalty-free withdrawals from retirement accounts after age 59½ and requires withdrawals after age 72. (These are called required minimum distributions, or RMDs). There are some exceptions to these rules for 401(k) plans and other qualified plans.

As a very basic example, if you had $5,000 in your 401(k) today, and it grew at an average rate of 5% per year, it would be worth $10,441 in 20 years—more than double. If you withdraw those funds early, however, you're not only facing a stiff tax penalty, you're losing all of that additional growth.

In addition to the money you invest, many employers match a portion of your contributions. So, for instance, an employer offering a full 3% match would contribute one dollar to your 401(k) for every dollar that you put in yourself, up to 3% of your salary.

Example of a partial match: 50% of what you contribute up to 6% of your salary. In this scenario, if you earn $100,000 per year and you contribute 6% of your salary, or $6,000, your employer will match and contribute half of that, or $3,000. Example of a full match: 100% of what you contribute up to 6% of your salary.

Facebook matches employee donations of up to 7 percent of their income at a significant 50 percent. Participant accounts in the Plan are always fully vested. Meta will match your 401(k) contributions dollar-for-dollar, up to fifty percent of the IRS's maximum contribution limit, beginning on January 1, 2022.

After-Tax Contributions Using the Meta Mega Backdoor Roth

Meta allows employees to contribute after-tax dollars, up to the federal limit. As mentioned above, the IRS federal limit for total contributions to a 401(k), for someone under 50, is $69,000. If you are 50 or older the IRS limit increases to $76,500.

Google matches 100% on the first $3,000 you contribute to your 401(k). After that, they provide a 50% match on your contributions up to $19,000.