[Anonymous]

I recently went through 5 or 6 interviews with public accounting firms until I got a job offer with a mid-size company (more than 500 employees). They have a 401K plan, but the employer does not match the contribution. Same things with the previous companies I interviewed with. Is it normal for public accounting firm not to match employee’s 401K contribution? Seriously, it isn’t really a benefit for me if they dont match it, IRA would be more flexible (unless I want to contribute more than $5,500/year, then 401K allows me to do that. But I am not planning to). The company offers profit sharing plan, vesting in 6 years with 1st year 0% and 20% increase for each year after the 1st year. The contribution is 3% of the employee’s gross salary. Is it an “OK” benefit for a mid size public accounting firm?

[rfc63]

Does the answer to your question even matter? The company offers what it offers, normal or not. I would agree with you that the only way a 401k is a “benefit” is if there is some matching but it really does not matter whether it is normal or not.

[Determined CPA]

I work for a small firm that doesn't even offer 401k at all. I contribute to a roth IRA on my own and keep a savings account collecting small interest and invest a bit in stocks. It is what it is.

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Anonymous]

@RFC63 It does matter to me. It might affect my decision to accept or turn down the offer, and I also want to know if that is what bascially other companies are offering out there. Let's say if I know for sure that is pretty much other public accounting firm offer, I might just accept the offer without going through more interviews, but if I know that other companies offer matching, I might hold off the offer for now and interview more companies.

[fuzyfro89]

Not sure if it's changed recently, but I know of two Big 4 firms that matched the equivalent of 1.5% of salary to 401k… so basically nothing. Perhaps this has increase since 2013? (others may provide better info)

From the firms' perspectives, they have very high turnover, so most employees aren't looking for a 401k as a means of compensation. Public acct firms have a very biased “up or out” model, as opposed to industry where people are looking for more well-rounded (and higher overall) compensation packages.

Rather than nit-picking your pay package in terms of base/bonus/401k/etc, just compare total comp from one place to another. In reality, that's the number you need to maximize.

To answer briefly, yeah that's pretty close to what I got.

[Anonymous]

@fuzyfro89 Thanks for your info. I might just accept the offer, so tired of going to interviews and making up excuses for my absence.

[Determined CPA]

chrisli1217 – completely understandable that you want to consider all the factors before accepting a job offer. In my opinion, I would put very little weigh on the matching, as it usually is low and can come at a high cost (working 80 hour work weeks). I would focus on whether you like the people, there is room for growth, things like that. You can always contribute to an IRA, and yes, there is no matching there, but if you start young, you should be fine for retirement. It's refreshing to see people care about their future – very admirable! Seems like you have a good head on your shoulders! Good luck!

A - 75
B - 78 God is good.
F - 77 Answered prayers.
R - 84! Done!!

Paperwork sent - waiting for license!!
Still on a cloud and in shock. Through God, all things will happen.

[Anonymous]

That is just odd. Every place I've ever worked has offered a 401K with matching. Though none of them were with Accounting firms (so it sounds like it's an industry thing but a pretty crappy industry thing).

[soyanks]

1) I thought 401K was standard compensation in public accounting (especially for a mid size firm with 500+ employees).

2) All the Big 4 firms offer 401K (they have to if the other one offers it. Match isn't much though. Plus, employee contributions vest immediately. Employer match contribution vests between 3-5 years, depending on the firm's policy. This means that even if your firm matches your contribution, for it to vest, you have to stay with the firm for at least 3-5 years. If not, you lose it)

Does your mid size firm offer overtime? I know some smaller firms still offer it. If so, that's wayyyy better than a 401K match.

FAR - 86
REG - 85
BEC - 90
AUD - 84

[Anonymous]

My firm did not match the max, it wasn't even close to it..

[Anonymous]

@Determined CPA, Thanks for your compliment. I just want to know more about my benefit before I accept the offer. And it is for my own good as a tax accountant to know when clients walk in and ask for advice.

@Angelwatch, yes, I agree with you, a lot of industries offer 401K and match employee contribution. Actually one of my friends' who works as a flight attendant, her company offers the traditional employee can contribute up to 6% of their salary and company match 50%, which make it 3% of employee's salary contribution. My understanding is my friend is making 30K a year, and seriously, when you making that amount of money, you really do not have extra money to contribute, so not a lot of people take advantage of that program anyway. So I believe that explains why some industries are offering while others are not (I assume accounting industry making more money than other industries that offer the 401K matching, I could be wrong. just my opinion)

[Lisa_Jane]

@chrisli1217

Here is something to consider- my company gives a 9% match. The benefits here are good and now I get a month of vacation, but I am sick of my job, I don't like my boss or the people I work with. It feels like golden handcuffs because I keep telling myself that I get a steady salary (not great either) and good benefits. I plan to pursue public accounting in 2015 and what is important to me is some work life balance, not a 401K match. I can save for my own retirement. I want training and public experience and that's why I'm going to pursue public. You have to keep it all in perspective.

FAR Passed 5/28/14
AUD Passed 1/22/13
BEC Passed 7/12/13
REG Passed 5/9/14
Virginia CPA license issued July 2014

[Author]

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