Anyone who enjoys getting 100% instant return on their invested dollar is excited about getting a company match.

This post is the 3rd 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 any work place.


Question 11.

For 2016, is the match 4% based on the income we made for the entire calendar year from 1/1-12/31/16?

No as you are not making contributions to the Banner 401k during that time. Keep in mind that the match is NOT counted toward the 18K maximum.


Question 12.

Please provide a numerical example of how the number works based on a $50,000 income in year 2016 ($1923.1/pay check).

4% of $1923 = $76.92 and that is what the company match would be.


If you earned $50,000 from 7/1-12/31/2016, and you contributed at least 4% each check during that time, the company match total would be $2,000 ($50,000 X 4% = $2,000).   And you would have contributed $2,000.  If you contribute 8% each pay period and earned a total of $50,000 from 7/1-12/31/16 then you would have contributed $4,000 and the company would still be $2,000.


Keep in mind if you participate in another 401k during the first part of the year any contributions you made count toward the annual maximum [Editor: annual maximum of 18,000, so plenty of space for most of most] you can contribute in 2016.


I would be more than happy once you are in the Banner system to help you determine what percentage to set up.  I would just need to know how much you have already contributed to that point and how much you anticipate your compensation will be from 7/1-12/31/16.


Apply to DRB by clicking here, you will get $300 cash bonus and WCW will get a referral fee when you sign your contract. Win-win!


Question 13.

Where can I learn more about Banner benefits?

Yes information regarding all Retirement plans are available on our Benefits website:

In summary, once you are in the Banner payroll system and making contributions of at least 4% to the 401k and you have reached your 1 year anniversary you will get dollar for dollar on the first 4% of your contribution each pay period.



Apply to Earnest by clicking here, you will get $300 cash bonus and WCW will get a referral fee when you sign your contract. Win-win!


Here’s the synopsis of retirement plan from Banner website.

Retirement Plans

Banner Health’s 401(k) and 403(b) plans offer eligible employees the opportunity to set aside money in a pre-tax retirement plan without a waiting period.

Banner has partnered with Fidelity Investments as our provider of investment options, and recordkeeping services for the retirement plans. Fidelity is the nation’s largest mutual fund company with $973 billion under management for more than 16 million investors.

Maximum Salary Deferral

The maximum employee salary deferral (contribution) for 2015 is the lesser of 100 percent of your annual pay or $18,000 (increased from $17,500 in 2014). To calculate your maximum allowable deferral percentage, divide $18,000 by your projected annual salary.

If you will be age 50 by Dec. 31, 2015, your 2015 limit is $24,000 (increased from $23,000 in 2014). To calculate your maximum allowable deferral percentage, divide $24,000 by your projected annual salary.

The IRS has set a $265,000 limit on 401(k) and 403(b) eligible salary (increased from $260,000 in 2014).

Banner’s payroll system is set up to automatically stop your contributions when you reach any of the above annual limits.

No employer matching contribution will be made for any pay period in which you do not have a contribution.

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Immediately Vested

Some companies require their employees earn the right to keep contributions the company has made to their retirement plan by working for the company for a certain number of years. This is called vesting.  Banner has no vesting requirements. You are always 100 percent vested in your and Banner Health’s contributions to the plan. In other words, you will always have ownership of the contributions you and Banner make to your retirement plan account.

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Loans are Available

While the retirement plans should be considered a long-term investment, you will have the ability to request a loan. The minimum amount you can borrow is $1,000, and you can have two outstanding loans at a time. Generally, you may borrow the lesser of 50 percent of your balance or $50,000. Any outstanding loan balances over the previous 12 months may reduce the amount you have available to borrow. Loan repayments (plus interest) to your plan account are paid back through electronic bank draft. No loan may be written for longer than five years.

In addition, you may take in-service withdrawals on any after-tax contribution account. These after-tax contributions continue to be recorded as after-tax contributions on your account statements while your 401(k) deferral amounts are recorded as pre-tax.

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Accounts are Valued Daily

You are able to access up-to-date information about the value of your investments and make transactions on any business day, and every transaction is confirmed. Every three months, Fidelity will send you a detailed statement of your balance, account activity, and your personal rate of return.

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Summary Plan Description

Detailed information on this benefit such as eligibility, plan coverage, limitations and contact information can be found in the Summary Plan Description (SPD).

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Company Match Q&A Part III

Share Your Questions & Insights.

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