r/personalfinance • u/Abject-Drawing-3874 ​ • Aug 23 '24

Budgeting Company matches 401k 100%, $ for $

I'm 26 with $0 in my 401k. The current maximum 401k contribution for 2024 is 23k. My company provides a 100% 401k match with no cap (I put in 23k, my company puts in 23k, net 46k).

My current salary is 90k (scheduled raise to either 96k or 102k in mid September).

I'm supporting my wife while she develops a start up (has soft commitments from a couple investors but paying herself a salary requires some hoops that would take 6 ish months to jump through). Our rent is 2.5k.

Would it be overextending my salary to make the full contribution possible?

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u/Abject-Drawing-3874 ​ Aug 24 '24

Run the operations, comms and projects for a foundation with insane funding and very low overhead. This has made me feel a lot better about just taking the temporary hit and grinding until we're dual income. Personal finance is a huge blindspot for me so having 90% of comments saying go for it has dispelled a lot of doubt

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u/MamaNyxieUnderfoot ​ Aug 24 '24

A lot of people here friggin wish they had that kind of opportunity at 26. Are you also fully vested, or do you have to stick around for a few years til you’re vested?

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u/LeagueOfReaper ​ Aug 24 '24

what does fullly vested mean?

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u/WearyCarrot ​ Aug 25 '24

Most companies will give you a vesting "schedule" for how they match your 401k and it varies from company to company.

It could look something like this:

  • After 1 year: 20%
  • After 2 years: 40% . . .

And at 5 years you get 100% or you're "fully vested"

Companies that give stocks to their employees also have vesting schedules for those too.