Do you add the company's 401K contributions to your annual salary?

lancevance

Joined: Aug 4, 2005

Posts: 2,782

User Profile Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

If you were comparing job offers, do you add the 401K contributions to your salary to get a complete compensation?

Like if your job contributes 10% to 401K, do you do mental math and add it as extra income?

ktownag08

Joined: Jun 27, 2005

Posts: 6,307

User Profile Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

9:44p, 1/15/25

AG

I don't include it when evaluating comp as most company offers are very similar. I'd only take into account if there was a very high delta.

11

210

Joined: Jun 5, 2019

Posts: 5,442

User Profile

Private Message

Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

11:12p, 1/15/25

AG

Of course, it's part of total comp. Also include things like health insurance premiums.

9

Roger350

Joined: Jul 23, 2001

Posts: 904

User Profile Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

In reply to 210 • 6:27a, 1/16/25

AG

Yes, anything that affects take home pay and retirement savings has to be part of the equation. The importance or usefulness of those two categories may vary based on where you are in life and factor in weighing what is most important, but it should all be considered as a part of total compensation along with PTO. But, all these things matter much less than the role and the company culture. If one job is a much better fit, that should be weighted more heavily than the comp package.

6

Petrino1

Joined: Jan 21, 2013

Posts: 4,024

User Profile Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

In reply to lancevance • 12:05p, 1/16/25

lancevance said:
If you were comparing job offers, do you add the 401K contributions to your salary to get a complete compensation?

Like if your job contributes 10% to 401K, do you do mental math and add it as extra income?

Yes, definitely I use it when comparing job offers. In some ways, its actually better than extra base salary because its tax free money your company is contributing to your 401k.

GoAgs92

Joined: Sep 19, 2000

Posts: 15,011

User Profile Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

1:23p, 1/20/25

AG

I would not add the contribution.

I would add my annual bonus.

1

one MEEN Ag

Joined: Jan 2, 2013

Posts: 9,667

User Profile

Private Message

Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

In reply to lancevance • 2:07p, 1/20/25

AG

lancevance said:
If you were comparing job offers, do you add the 401K contributions to your salary to get a complete compensation?

Like if your job contributes 10% to 401K, do you do mental math and add it as extra income?

Yes and no. No need to pull it all into one big number. Just keep it compartmentalized. X salary, Y bonus, Z 401K contributions, etc.

It is compensation so might as well add it up for total compensation, but my paycheck is death by a thousand cuts so I never really see that top line number anyway. 401K, employee stock purchase program, HSA, dependent care spending account.

Its nice when comparing it all together, but when the check hits I'm just trying to hide money from myself.

1

EFR

Joined: Dec 19, 2014

Posts: 2,579

User Profile Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

7:24p, 1/22/25

Absolutely count it. I turned down a job a while back where the pay was slightly more and the job sounded cool, but they had crap for retirement. In order for me to continue to even be close to my current retirement savings rate I would have taken a decent cut in my take home pay.

txaggie_08

Joined: Dec 5, 2006

Posts: 16,245

User Profile

Private Message

Ignore User Stop Ignoring

How long do you want to ignore this user?

24 hours One week Permanently Cancel

In reply to ktownag08 • 9:21p, 1/23/25

AG

ktownag08 said:
I don't include it when evaluating comp as most company offers are very similar. I'd only take into account if there was a very high delta.

Soooo, you do account for the match.

1