[lucaspm98]

Do Google and Facebook really only match half of 401(k) contributions up to 7%?

I thought employers competing on benefits were moving towards dollar for dollar or better matching. This is especially important for high income earners who'd be maxing out, because the 401(k) contribution limit for 2023 is $22,500 for employee contributions but $66,000 for combined employee and employer contributions.

[mrep]

Each is slightly different but it amounts to $10,250 worth of match if you max it out and then you can hit the $66,000 limit through the mega backdoor roth.

[kevinventullo]

Right, and the mega backdoor you can fund yourself. So there’s not much point in cos juicing the match versus just paying people more, which big tech is not afraid to do.

[mrep]

Sort of. The employee + employer match can go into regular 401k or roth 401k whereas the mega backdoor roth is only roth.

Thus you can put ~33,000-66,000 into roth ones and only 0-33,000 into pre-tax ones whereas if the employer match got you up to the full 66,000, you could fully customize it to pre or post tax however you like.