HARVARD UNIVERSITY DEFINED CONTRIBUTION RETIREMENT PLAN Contribution & Employer Match
HARVARD UNIVERSITY DEFINED CONTRIBUTION RETIREMENT PLAN Contribution & Employer Match
PRESIDENT & FELLOWS OF HARVARD COLLEGE HARVARD HUMAN RESOURCES, BENEFI provides the following retirement savings benefits to its employees:
HARVARD UNIVERSITY DEFINED CONTRIBUTION RETIREMENT PLAN Average Participant Retirement Account Value
2023 & 2024 401(k) contribution limits by IRS
| Pretax and roth employee contributions | Employee and employer contributions combined | Catch-up contributions (in addition to the employee and employer combined limit, age 50 and over) | |
|---|---|---|---|
| 401(k) contribution limit for 2023 | $22,500 | $66,000 | $7,500 |
| 401(k) contribution limit for 2024 | $23,000 | $69,000 | $7,500 |
$1,440,056: this is the amount you will have saved 20 years later if you contribute the maximum of $22,500 annually for 20 years, assuming a 10%* annual return.
$4,224,165: for those who can maximize employee and employer annual $66,000 contributions for 20 years, assuming a 10%* annual return, you will be 3 times richer!
Use the 401(k) Savings Calculator to determine how much your contributions will accumulate over time.
Employer match in HARVARD UNIVERSITY DEFINED CONTRIBUTION RETIREMENT PLAN
An employer match is deemed as ‘free’ money wherein your employer contributes additional funds to your allocated retirement savings plan. The matching amount can frequently be several percentage points of your compensation. Don’t avoid this free salary ‘raise’.
HARVARD UNIVERSITY DEFINED CONTRIBUTION RETIREMENT PLAN Estimated Average Employer Match
Investing in this additonal $5,067.00 for 20 years would give you extra $324,300.00, assuming a 10% annual return.
HARVARD UNIVERSITY DEFINED CONTRIBUTION RETIREMENT PLAN Contribution & Match Policy
1. Employee Contribution Rates: Employees can contribute up to 5% of their salary if they are under age 40, and 10% for those aged 40 and above, plus 15% on compensation exceeding the Social Security wage base.
2. Employer Match/Contribution Conditions: The employer contributes based on individual age and compensation. For participants under age 40, the employer's contribution is 5% of Plan compensation up to the Social Security wage base and 10% on compensation in excess of that. For participants aged 40 and above, the percentages are 10% and 15%, respectively. The maximum amount is determined by the Social Security wage base.
3. Vesting Schedule/Eligibility: Participants become vested in employer contributions after three years of service (five years for non-HUCTW union participants who terminated before January 1, 2008). Eligibility requires employees to attain age 21, work at least 17.5 hours per week, and complete six months of service. Those not regular employees become eligible after completing one year of service, generally 1,000 hours.
4. Roth 401(k) Contribution: Not applicable.
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