Does anyone here know about 401(a)s? I can not find the right info using Google. Namely, what are contribution limits for an employee with a 403(b), 401(a), and a 457? My wife has been offered a hospital job with all 3. The official wording in the offer on the 401(a) is:
After one year of employment employer will contribute 3% of employee's annual compensation to the plan account each year, with an additional 5% match. A six year graded vesting schedule grants 20% ownership after the second year, then 20% more each year
OK, so nothing will happen in the 401(a) in year 1. We will max the 403(b) to $18,000. The 457 doesn't effect limits on anything.
In year 2 the employer will start putting 3% in there (sweet, free money!). And, I think this says she can contribute another 5% of her salary and they will match that dollar for dollar, right? But, I think this means she would have to reduce her 403(b) contribution by 5% as the $18,000 limit is cumulative between the 403(b) and the 401(a)......right? This is where Google is failing to find me a definitive answer. I do know that the 401(a) has a total limit of $53,000 combined employer/employee.
Lastly, even with the possibly worse investment options in the 401(a), and the vesting schedule, it seems like a guaranteed 100% return (match) on that 5% contribution is a pretty sweet incentive. right?
thanks.
After one year of employment employer will contribute 3% of employee's annual compensation to the plan account each year, with an additional 5% match. A six year graded vesting schedule grants 20% ownership after the second year, then 20% more each year
OK, so nothing will happen in the 401(a) in year 1. We will max the 403(b) to $18,000. The 457 doesn't effect limits on anything.
In year 2 the employer will start putting 3% in there (sweet, free money!). And, I think this says she can contribute another 5% of her salary and they will match that dollar for dollar, right? But, I think this means she would have to reduce her 403(b) contribution by 5% as the $18,000 limit is cumulative between the 403(b) and the 401(a)......right? This is where Google is failing to find me a definitive answer. I do know that the 401(a) has a total limit of $53,000 combined employer/employee.
Lastly, even with the possibly worse investment options in the 401(a), and the vesting schedule, it seems like a guaranteed 100% return (match) on that 5% contribution is a pretty sweet incentive. right?
thanks.
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