403(b) question - Employer Contributions & Vesting

[Will]

Checking my wife's 403(b) account online (which I should probably do more often than every few months) and the only contributions showing up as having been made have been her elective contributions withheld from her paychecks (3% of her salary).

Plan calls for employer match of 100% up to 3% of her salary, plus fixed contribution of 1% of her salary. BUT she is not vested in the employer contributions until 3 years of service. Only been there 8 months so far.

So is it OK/normal that these employer contributions aren't also showing up? Account is with OneAmerica. Just want to check before I yell at these people on her behalf again (some of you may remember my thread from when she got the job and they allowed some independent financial adviser onto the premises under the guise of meeting with her about setting up her work retirement plan, and the ass-hole used the meeting to trick her into rolling over her 401k from prior job into a private retirement account where he generously invested everything into front-loaded American Funds).

[Rob]

You should see those. Do you see them as employer contributions on her paycheck?

[Will]

Originally Posted by Dixievet

You should see those. Do you see them as employer contributions on her paycheck?

Nope.

[ZipZap]

It depends. Some employers make a single contribution, or quarterly. What does it say on the employment agreement?

[99 pewtercoupe]

Originally Posted by ZipZap

It depends. Some employers make a single contribution, or quarterly. What does it say on the employment agreement?

There are some companies that only make a single contribution at the end of the year. If you leave at some point during that year, you don't get anything for that year. As ZZ said, you need to check the agreement

[Will]

Does not specify when. Only specifies that her elective contributions will be matched 100% up to 3% of her salary, plus the fixed contribution of 1% of her salary.

It can't be quarterly, because there would be something by now. If it's normal for them to make them yearly, that's fine. Free money is free money, don't care when she gets it. (Of course if they do it at the end of the year she is missing out each month on the INCREDIBLE annual rate of return she is enjoying on the AWESOME investment options in the plan - 1.3%!!!)

[lspencer534]

Originally Posted by 99 pewtercoupe

There are some companies that only make a single contribution at the end of the year. If you leave at some point during that year, you don't get anything for that year. As ZZ said, you need to check the agreement

As far as I know, there are few, if any, companies that make contributions more than once a year, for the reason you stated.

[Will]

Originally Posted by lspencer534

As far as I know, there are few, if any, companies that make contributions more than once a year, for the reason you stated.

Thanks for the info guys & gals.

Pretty sad that we're as old as we are and are just now getting exposure to things like retirement plans.

[lspencer534]

Originally Posted by Will

Thanks for the info guys & gals.

Pretty sad that we're as old as we are and are just now getting exposure to things like retirement plans.

Will, don't feel bad about just now learning about retirement plans. My former law partner (now retired) did nothing about his retirement plans until age 50. In the following 25 years he built up a very comfortable retirement fund by saving every dollar he could spare. It can be done!

[Stevedore]

She should just ask her employer what the deal is; I'm sure they'll explain it. You may not like the explanation, but at least you'll know.

I was a govt employee for 27 years, but had some experience with 401 plans in my post-govt contracting years. Of the 4 plans I participated in, only 1 was easy to understand, track, etc. The rest were a mess.

[09CTSV]

Originally Posted by lspencer534

As far as I know, there are few, if any, companies that make contributions more than once a year, for the reason you stated.

We get our match each pay period. Match up to 6% if on the pension plan, match to 6% if not on pension plan and an additional 3% non match.

[JRD77VET]

Originally Posted by lspencer534

As far as I know, there are few, if any, companies that make contributions more than once a year, for the reason you stated.

The former owner made the required contributions once a year.

The current owner makes them every week ( pay period ).

[GreyGhost]

my company gives us 10% of our salary into a 403, every month. We can then open another account and put money from our paycheck into either a 401 or 403.

[VITE1]

Originally Posted by lspencer534

As far as I know, there are few, if any, companies that make contributions more than once a year, for the reason you stated.