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Comment by nostrademons | Hacker News Reader

It's hard to see how this would beat Big Tech, where the standard match is 100% up to the 401k limit ($20,500) irrespective of income. Say your salary is $200K at private company, would be $240K at Big Tech. You'll be getting 1.2 * 0.06 * 200 = $14.4K in matching funds. The Big Tech employee would stash the full $20.5K into their 401K, get $20.5K match, and then end up about $35K ahead on post-retirement income.

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You might want to go check the match of the big tech companies again.

Google: Greater of 100% up to $3000, or 50% up to contribution limit (whichever is greater)

Amazon: 50% up to 4%, vests after 3 years

Microsoft: 50% up to contribution limit

Facebook: 100% up to half of limit, 50% for the rest

Netflix: 100% up to 4%

I also don't just get the 120% up to 6%, I also get a fixed 4% of my salary contributed every year. So it's a hyothetical

    200 * .06 * 1.2 = 14.4
    200 * .04 = 8
    14.4 + 8 = 22.8

Still have trouble seeing how this comes out ahead. Say you're at Google or Microsoft where it's 50% up to contribution limit, and you get $10K in match. That puts you down $12.8K vs. your hypothetical. If you're getting paid $45K more at the FANG, you pay 35% taxes on it, which puts you $30K ahead after-tax, and then you invest that in an after-tax 401k (or even just a normal investment account), after which you're in exactly the same situation but about $17K ahead each year.

Also, FAANG will negotiate offers against fringe benefits. They won't cut you a custom 401K deal, but they will beat any offer by 20%+ and include the post-tax cash equivalent of better retirement packages in that beat. If you ask for it and if they want you badly enough.

Assuming you can get a gross offer that matches net, having the money in post-tax accounts is better because the tax rate on the 401K at withdrawal will likely be higher than the 15% capital gains rate.

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