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

lancevance

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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

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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.

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210

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11:12p, 1/15/25

AG

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

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Roger350

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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.

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Petrino1

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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

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1:23p, 1/20/25

AG

I would not add the contribution.

I would add my annual bonus.

one MEEN Ag

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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.