I'm starting at PwC in September. I got curious also after seeing this thread, so I went and looked at the employee benefits flyer. It DID NOT say there was a ROTH 401k. There is a traditional pre-tax 401k, but it didn't say anything about a Roth. Kind of disappointing imo….
However, they match 25% up to 6% of your deferral (so 1.5% of your salary). They also have a “Wealth Builder” type of employer contribution thing where they contribute a minimum of 3% (for associates. seniors/managers/partners get an increasingly larger %) of your base salary each year into the portfolio in addition to the 1.5% into your 401k. This vests 20% after 2 years, 40% after 3 years and so on.
So although you don't get the Roth, getting 4.5% free money added to your retirement account each year isn't bad.
I have worked at two different large companies since graduation and I've had a traditional and roth 401k at both places. I'm pretty sure that it's very common to have the option of either at most workplaces.
We have Vangaurd at D&T, they have a similar small match as mentioned above, I have a piece going to a traditional and another piece going to a roth. There is also a pension that we vest into after three years.
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Not trying to hijack this thread, but just wondering…..are the 401k matches in public accounting generally pretty low? I have been looking for a position in public and this would be a big change for me. Right now my employer contributes 10% of my salary to 403b. It is not a match. I must contribute at least 5%, but I do 15%.
I work at a regional firm in Kansas and while they offer both pre-tax and roth 401ks. They don't match anything. They have a PSP after 2 years where they usually put 7% of your annual salary into your account, but it's not a guarantee. And you don't have to put anything in to get their PSP. But match would be nice.
KPMG offers traditional pre-tax and Roth. My new job is traditional pre-tax only which was disappointing. My company match is done each paycheck though, rather than after year end like at KPMG so that's nice.
At most places, the Roth option will just be an election you make with the 401k company when you enroll. I would be very surprised if PWC's plan didn't offer it. I've honestly never encountered a company with a 401k that did not have a Roth option – and we audit 401ks at my firm.
@impska Yeah, I agree- I was kind of confused by this post because I've never heard of a Roth 401k not being an option. I was on many employee benefit plan audits and never heard of a roth 401k not being offered. The only thing I can think of is maybe the match is only applicable to traditional 401ks?
I think if it's a really old plan, the employer might have to opt into the Roth option. I think most of the larger 401k servicers sent out amendments to employers when the Roth 401k came into law. But if someone is holding their 401k somewhere strange, it's possible that it never happened.
But I highly doubt PWC is holding their 401k anywhere weird. 😉