Anyone who enjoys getting 100% instant return on their invested dollar is excited about getting a company match.
This post is the 2nd part of 3-post series to answer all your questions on maximizing your company match. While this series answers specific questions about the BUMC (Banner University Medical Center) match, the general principles apply to employer contribution to employee retirement savings.
These answers were provided by Jan White, System Coordinator for the Retirement Plans at Banner, who has been with Banner for 43 years.
Is the 4% Banner match pre or post tax?
Is there a vesting period for the match? Do I need to be a banner employer for a minimum amount of years before the match really becomes mine?
You will be vested each pay period once you are eligible for the Banner match.
How do I maximize getting the 4% Banner match?
You will receive up 4% match on your contributions each pay period as long as you make contributions to the 401k (pre-tax). We do not match on the Roth. There are two reasons that contributions would stop and this is if you reach the max you can contribute to the plan or you reach the IRS allowed compensation of $265,000 whichever comes first. And when your contributions stop so does the company match. You are 100% vested in your money and the company match on the Banner 401k plan.
Will there be HSA (Health Savings Account) option for residents?
Yes the Banner Health Savings Plan is our H.S.A. approved medical plan
What happens to my UAHN 403b plan?
The vesting schedule will continue for your funds from UAHN 403b plan for the company match. Those funds will be rolled over from UAHN on Oct 30th after close of market into the Banner 403b and no further contributions can be made to that old plan.
Is there an option for residents/ fellows to max out their 401k ROTH at 18k and just forego the 4% pretax match? Or is it mandatory that one CAN NOT contribute to the Roth component of 401k UNTIL after putting in 4% pretax contribution first?
You must contribute 4% to the pretax 401k before you can contribute anything to the 401r (Roth, post-tax) component. And the two are combined to reach the 18k, it is not a separate 18k to each.
How soon after I get the match from banner, may I go ahead and pay taxes on the pre-tax portion (presumably 8% of my salary) of my 401k to convert it into post-tax/Roth dollars?
I will need to get back with you on this answer, if it is even possible.
I will make sure that we schedule our Fidelity rep team to be in Tucson prior to your coming into Banner to assist with enrollment and any questions you and your colleagues may have.
- Do you have other questions?
- Anything else you learned about your company (BUMC or otherwise) match?