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  • #31





    This brings up a question I’ve wondered about before — what do people consider a “good” employer match? At my job we get nothing the first 2 years, then a 7% match from years 2-10, then a 10% match after year 10.  I know compared to many other jobs (like my wife who gets 1.5% max) it’s phenomenal, but how well does it compare to others?  Compared to the other universities where I interviewed for my faculty job it was similar, but I know many industries offer much lower. 
    Click to expand…


    That’s great after the 2nd year. Waiting 2 years is unusual, though. I can see the reasoning as it pays off to make the career permanent. Usually see 6 mos to a year, if not after 30 days or so.
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    I think a lot of the benefits at my institution are designed to encourage you to stay a long time and as an alternative to higher base salaries.  Salaries are lower across the board but the retirement match is nice and tuition benefit is great if you have kids.

    Making use of the tuition benefit obviously requires you have kids and stay with the university through their time in school, and I think you have to be at the institution for several years to be eligible.

    A great tuition benefit instead of a high salary also keeps people from retiring early...
    An alt-brown look at medicine, money, faith, & family
    www.RogueDadMD.com

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    • #32
      I work for an academic medical center and we don't get a match, per se. But I get 14 percent of my gross salary (on top of my gross salary) put into a retirement account for me. And also have access to a 457 and 403b. My husband also works for the university in a tech position and gets these same benefits. All told, we have over 100k available in tax deferred retirement space. It's pretty amazing.

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      • #33
        Whoa -- that's phenomenal. Mind sharing where this is?
        An alt-brown look at medicine, money, faith, & family
        www.RogueDadMD.com

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        • #34




          Whoa — that’s phenomenal. Mind sharing where this is?
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          Most large centers/systems offer something similar.

          I get a 403b + 457b + 6% gross salary match into 403b + 3% into a cash pension plan. Ok not 14% tho!

          Other "fringe" benefits include 10K in tuition per year, up to 8 years or 80K for kid's college + grad school, 2 kid max

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          • #35










            If it helps to have more information on my new role, my base gross annual salary is 190k. I have a stay-at-home wife at the moment, no kids. I am renting a 1800 apartment. Don’t have a car loan. Have the 9k combined education loans from my wife with interests ranging 4-6%.

            You spoke about both Roth 403B and traditional 403B. You recommend to try and max both of them? What about saving for down-payment? What strategy should I use?
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            WCI gave you an answer to this, but I’m not sure he had read through all of the messages. Student loans of $9k at 4 – 6% should be knocked out first. Since you have decent Fidelity options through your ORP and it has a match where (I presume) the 403b doesn’t, it makes more sense (based on the little I know at this point) to focus on the ORP & get maximum match because you are earning under the threshold (at least $245k) and will get an 1.85% “over-match” – that’s incredible. I really can’t go beyond this recommendation at this point, however.
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            I’m pretty sure the ORP is the 403(b).  You have a mandatory contribution and match in this program.  There is additional room for voluntary contributions in the 403(b) up to the yearly maximum of $18,000 (pre-tax) and then they allow after tax contributions (not sure I would do this).  Then you have a governmental 457(b) option as well (with match in 403b and maxing both 403b and 457 you will be at about 25% savings rate).  They should have given you an updated benefits page that gives the most simple explanation on the second page.

            Please note that all of your matching funds are held in a money market account until you are vested at 1 year 1 day.  You will have to manually direct this money into investments after that point and additionally make sure your future matching is set up to be placed into the funds of your choice.  If you fail to do this, your matching funds will continue to be placed the the money market account portion of the plan.

            //I’m helping my wife set this same stuff up tonight.  Same employer.  I think Fidelity is the obvious choice out of the available providers.
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            Do you have any idea of the withdrawal fees for ORP if after 1 year/1day I leave my job and go to another state?

             

            Manuel

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            • #36
              Chiming in as a fellow Texan:

              Public school teachers and employees of state edu system make a one time election for TRS pension or ORP (401k like, with state match).

              The wife's employer offers TRS/ORP, 403b without match, 457b and then extra cherry on top employer-contribution accounts for salaries above X amount, etc. OP should clarify with HR - they may have more tax deferred space than they think.

              Just goes to show us W2 types would be wise to shop around - they are still some generous benefits packages out there. My offer from a national for profit employer was not competitive with an "academic-ish" clinical appointment at a big institution.

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              • #37
                Check your messages :-)

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                • #38
                  Tex-

                  I'm starting to see that the ORP while a 403(b) does not count against personal contributions limits as it is a mandatory, no opt out provision of employment.  I think the IRS refers to these as "pick-up" contributions.  I have yet to find the specific IRS release stating this in regards to individual contributions but it seems to me you get to make the full $18,000 to the 403(b) contribution in addition to the mandatory amounts.  My wife's contract is for $180k so that would get her to a 35% savings rate if it is true.

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                  • #39

                    @Dicast Yep - my understanding as well. ORP doesn't count towards 403b limit.

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                    • #40




                      @dicast Yep – my understanding as well. ORP doesn’t count towards 403b limit.
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                      It doesn't from what I have read.

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                      • #41
                        The $18,000 to 403(b) applies only to elective deferrals which come out of your salary and applies to all *combined* 403(b), 401(k), and SIMPLE accounts you have.  457 accounts are not included in that.

                        You can still have other contributions to the 403(b) (such as employer match) up to a total of $53,000 *per employer*.  If the employer money isn't going into your 403(b) - I don't know if ORP Does - then it's not subject to that limit.

                        IRS Publication 571 for reference, for your infinite reading pleasure (gag): https://www.irs.gov/pub/irs-pdf/p571.pdf

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                        • #42
                          Greetings:

                          Everything is going well after my initial thread post a while back. I have been saving 50% of my paycheck, 20% going to Retirement and the rest going into Down Payment savings and other tidbits. Of the 20%, 6% is kept by Employer for Retirement Plan (and matched by 8%). The additional 14% is right now in my bank's Savings account.  I have a Roth IRA opened last year before starting as an attending, plus savings in two index funds. Where should I put this additional 14% for Retirement currently in my Saving's account?

                           
                          Thank you,

                          Manuel

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                          • #43
                            I would open a taxable account at Vanguard.

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                            • #44




                              I would open a taxable account at Vanguard.
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                              I second that emotion.

                              First, make sure you've gotten all the tax-advantaged investments available to you. HSA if it makes sense for your family. Backdoor Roth. Then start buying a simple total stock market index fund. Create a simple IPS to guide further investments.

                              Strong work, by the way. Meeting the challenge to Live on Half!

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                              • #45







                                I would open a taxable account at Vanguard.
                                Click to expand…


                                I second that emotion.

                                First, make sure you’ve gotten all the tax-advantaged investments available to you. HSA if it makes sense for your family. Backdoor Roth. Then start buying a simple total stock market index fund. Create a simple IPS to guide further investments.

                                Strong work, by the way. Meeting the challenge to Live on Half!
                                Click to expand...


                                I havent done the Backdoor Roth. Have read a little about it. So, if I have a current Roth IRA, would that be the first thing you would do then?

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