Singing bonus at new job

Hi all,

I recently got a new job and resigning from my current position. My start date is end of this month.

I had to change my start date twice. Once because i wanted to take a few days off before I join the new company. The next time because my recruiter was supposed to get promotion if i start on Feb 28th instead of March 1st. Just to help him out i changed the start date back to Feb 28th.

Now that im leaving the company, I'm trying to find out what to do before i leave my current job and found out I will be loosing the matching 401k. Because it's the HR policy that, i need to at this current job for at least 3 years to get the benefit. But I have been with the company only two and half years.

One of my co-worker suggested me that i could ask for singing bonus at the new company. The new company has been so flexible and accomodating with all the start date changes. I feel bad to ask them. I also don't want to come off as greedy.

Just wondering if anyone from ENA has experienced anything like that. Is that a good idea, to ask them anything more after the I've agreed upon accepting their offer and given the start date? If it doesn't hurt to ask, I would, but do i talk to HR about it or my new manager?

I don't have first hand experience with signing bonuses, but I think it falls under the category of...they are offered to you, you don't ask for them.

Talk to your accountant not your future employer. Also look into their benefit package. Sorry that suggestion by the coworker was sort of ditsy, not too smart, right?

I'm trying to find out what to do before i leave my current job and found out I will be loosing the matching 401k. Because it's the HR policy that, i need to at this current job for at least 3 years to get the benefit. But I have been with the company only two and half years.

Hello, wai.

Would it be possible to inquire about potential opportunities for performance-based bonuses? Perhaps that would sound more proactive and positive to your new employers, as well as show your eagerness to succeed.

I wish you luck.

Talk to your accountant not your future employer. Also look into their benefit package. Sorry that suggestion by the coworker was sort of ditsy, not too smart, right?

The benefit package is great. Similar to what i'm already getting here. I will not get 401k matching until after i serve for a year then they will contribute up to 5%. then you have to stay for 3 years at the company, so that it will become mine.

You negotiate benefits and salary before accepting a job. I don't think them being flexible with your start date will prove at all indicative of them being willing to offer you a financial incentive after the fact. While negotiating, I'd say it's actually fine to ask for a bonus even if not offered. It usually ends up a better deal for the company than you negotiating your salary higher.

If you've already agreed to a wage / salary and now come back with wanting a signing bonus, you're essentially reneging and telling them you're not content before you've even started. Personally, that's not how I'd want to set my footing with a new company.

But you know your financial situation better than any of us and what you require. If it's worth it / necessary to you, feel free to ask.

Hello, wai.

 

Would it be possible to inquire about potential opportunities for performance-based bonuses? Perhaps that would sound more proactive and positive to your new employers, as well as show your eagerness to succeed.

 

I wish you luck.

Thank you for your reply. Yes. I get year end performance based bonus at my current job. I will be getting something similar at my new position. This 401k thing is something i found out last minute. I've spoked to HR before and they gave me the wrong info. Saying that i will be keeping the money. But I called them again after i handed in my resignation, they said it's not true. I have to be at the company for 3 years at least to keep the matching.

......There is a huge difference between shifting your starting date up and down a couple of days and suddenly demanding more money after you've accepted their offer. You simply do not start demanding more money after you've already accepted their offer. Doing so can quickly end with them wishing you well on your way out the door while they call in the runner up.

Companies have budgets and if they are not offering sign on bonuses, it's because they don't do it. You can ask if there is one when you are first interviewing, but you cannot demand one, or ask for one once the deal is closed.

Your 401K situation is on you. Should have known or checked before switching jobs. Going to the new employer with this kind of info would not only make you look greedy, but also make you look like a total flake and that might make them question their hiring decision or change it for that matter.

You negotiate benefits and salary before accepting a job. I don't think them being flexible with your start date will prove at all indicative of them being willing to offer you a financial incentive after the fact. While negotiating, I'd say it's actually fine to ask for a bonus even if not offered. It usually ends up a better deal for the company than you negotiating your salary higher.

 

If you've already agreed to a wage / salary and now come back with wanting a signing bonus, you're essentially reneging and telling them you're not content before you've even started. Personally, that's not how I'd want to set my footing with a new company.

 

But you know your financial situation better than any of us and what you require. If it's worth it / necessary to you, feel free to ask.

I'm with you on that. I feel that I'm giving them the wrong vibe. I've already agreed to the offer. I will be getting performance based bonus towards the end of the year. Which is undecided until the end of the year depending upon how well the company is doing ect... But i was told it could be from zero to 15k bonus usually. I'm ok with that.

I think I will just stick with it. My gut feeling is telling me also, I shouldn't ask.

What is the percentage match your current company is doing? If you are putting in $200 per month, which could be 5% of your wage, and they are doing a 3% match, that would be $120 per month, then you would be losing out on $3600. If they've been contributed to your account since then, I don't see how they can take it out of your account. They can't do that. So if the case is that they don't contribute until after 3 years of employment, then you've lost nothing, and should not sweat over it. On to better things like your new job.

Do not ask for a signing bonus if you weren't offered one in the first place, and you already accept the job without asking for one. I would laugh in your face, and think you were not as bright as hoped, and trying to pull one over me.

What is the percentage match your current company is doing? If you are putting in $200 per month, which could be 5% of your wage, and they are doing a 3% match, that would be $120 per month, then you would be losing out on $3600. If they've been contributed to your account since then, I don't see how they can take it out of your account. They can't do that. So if the case is that they don't contribute until after 3 years of employment, then you've lost nothing, and should not sweat over it. On to better things like your new job.

 

Do not ask for a signing bonus if you weren't offered one in the first place, and you already accept the job without asking for one. I would laugh in your face, and think you were not as bright as hoped, and trying to pull one over me.

The company matches up to 5%. so I'm putting in 5% out of my salary. They deposit 5% of my total salary every year. Which doesn't happen until after I've been with the company for at least one year.

so my second year, and third year, they matches 5% and deposited to my account. When i called HR first time when i was thinking about leaving. I was told that whatever they have deposited is mine.

I called them again to confrim it recently. then they tell me a different story.

I'm not asking for the singing bonus anymore. I was being skeptical about it also when my co-worker suggested it. That's why i came here and ask.

Are you not even partially vested in your old 401k? Or it's 3 years or you don't get any match? You will still get any money you contributed just not the employer match which was free money anyway. You have to stay 3 years to get it and you chose not to. It's a consequence of this career move. But any of your own money that you put into the account you are free to take with you and roll into another retirement account.

Are you not even partially vested in your old 401k? Or it's 3 years or you don't get any match? You will still get any money you contributed just not the employer match which was free money anyway. You have to stay 3 years to get it and you chose not to. It's a consequence of this career move. But any of your own money that you put into the account you are free to take with you and roll into another retirement account.

It's 3 years or nothing from the match. My 5% 401k that i've put in is mine of course. They can't take it away from me. I don't consider the matching as free money. I've bust my ass and earned it. It was part of the deal. I did not choose to loose this 401k matching. It was the circumstances that drive me to make the move. There was a new management, people were given 60 days notice recently. I resigned before that because I knew they were laying people off. and I was misinformed about the 401k matching by HR. I was told what they have deposited is mine until recently i called them to confirm it. But the balance stays if i decided to come back. It won't start from zero. What i've left with the company is gonna be mine, if i chose to come back and work for the company in the future.

It's 3 years or nothing from the match. My 5% 401k that i've put in is mine of course. They can't take it away from me. I don't consider the matching as free money. I've bust my ass and earned it. It was part of the deal. I did not choose to loose this 401k matching. It was the circumstances that drive me to make the move. There was a new management, people were given 60 days notice recently. I resigned before that because I knew they were laying people off. and I was misinformed about the 401k matching by HR. I was told what they have deposited is mine until recently i called them to confirm it. But the balance stays if i decided to come back. It won't start from zero. What i've left with the company is gonna be mine, if i chose to come back and work for the company in the future.

It's pretty common for companies to make you wait to own their contributions and the profits from the investments. Always find out if you have to be vested and how long that takes when you start with a new company.

Some companies use a schedule, like 20% per year for 5 years, at which point you are fully vested. Some companies don't offer a schedule at all, making you wait for 3 or 5 years.

Companies that still offer additional retirement plans often make you wait 10 years until you are fully vested.

So, unfortunately, their match and the profits are not yours, according to the deal you made when you accepted employment with them.

Be careful about how you treat your contributions when you leave the company. If you choose a cash settlement, you will be taxed. A lot. You can keep your funds in their account, roll the funds directly into the 401k with your new employer, or move it into another tax shelter account like an IRA. If you choose to transfer the funds into your new 401k (best move, in my opinion), make sure it's a roll or direct transfer. Do not let them close your account and send the funds to you.

Talk with the investment counselors your new company offers, and have them help you with all of this. Also, talk with them about how much you should be saving each year. Don't just blindly go with the maximum match amount, which is usually 5-6%. You'll need to save 10-15% of your income for a healthy retirement. If their 401k plans are making money, it's wise to put more there. If you can get more from a CD (doubtful) or a Roth IRA, then invest there.

Invest while you're young, and let your money build over time. If you want to see how that works for you, Google tmv calculators - Time Value of Money.

It's pretty common for companies to make you wait to own their contributions and the profits from the investments. Always find out if you have to be vested and how long that takes when you start with a new company.

 

Some companies use a schedule, like 20% per year for 5 years, at which point you are fully vested. Some companies don't offer a schedule at all, making you wait for 3 or 5 years.

 

Companies that still offer additional retirement plans often make you wait 10 years until you are fully vested.

 

So, unfortunately, their match and the profits are not yours, according to the deal you made when you accepted employment with them.

 

Be careful about how you treat your contributions when you leave the company. If you choose a cash settlement, you will be taxed. A lot. You can keep your funds in their account, roll the funds directly into the 401k with your new employer, or move it into another tax shelter account like an IRA. If you choose to transfer the funds into your new 401k (best move, in my opinion), make sure it's a roll or direct transfer. Do not let them close your account and send the funds to you.

 

Talk with the investment counselors your new company offers, and have them help you with all of this. Also, talk with them about how much you should be saving each year. Don't just blindly go with the maximum match amount, which is usually 5-6%. You'll need to save 10-15% of your income for a healthy retirement. If their 401k plans are making money, it's wise to put more there. If you can get more from a CD (doubtful) or a Roth IRA, then invest there.

 

Invest while you're young, and let your money build over time. If you want to see how that works for you, Google tmv calculators - Time Value of Money.

Wow this is very informative. Thank you. I am just putting 5% because its the max. I think i should put in more but i dont know how much more. I pay so much tax every year. I need to find a way to minimize it. I didnt know companies have counselling service on 401k. I need to talk to one of them and figure out how much i need to put into 401k

Well, if you do any 1099 work on your personal time that maximizes over $600, you can write off anything that contributes to that income. I write off my phone, internet, car, some travel and entertainment expenses, equipment I use for it. Are you a part of any member groups of non-profits that you do any donations or contributions for? Do you donate any clothes? And don't forget to look to see if your company has an FSA (Flexible Spending Account) you can use almost anything medical expense and prescription related, so you are saving 30/40% there.

Well, if you do any 1099 work on your personal time that maximizes over $600, you can write off anything that contributes to that income. I write off my phone, internet, car, some travel and entertainment expenses, equipment I use for it.

This almost sounds like you write of all of your phone, internet, and car because using it contributes to your income. Is that true? My understanding is if you use these for private use as well you can write off the proportion you use for business. Maybe it depends?

This almost sounds like you write of all of your phone, internet, and car because using it contributes to your income. Is that true? My understanding is if you use these for private use as well you can write off the proportion you use for business. Maybe it depends?

Only a proportional amount can be used, anything else is tax fraud.

So if you own your own business, a personal office in your home can only be written off if that office is used only for this work, nothing else.

Writing off the phone is likely tax fraud, to be honest.

Not a dig, just a giggle

Every time I see this thread in the Whats New feed, I giggle at the new Singing Bonus. Thank goodness I never had to participate in a new singing bonus. I would be forever out of work. I have a range of like, 3 and a half notes.

Not a dig, just a giggle

 

Every time I see this thread in the Whats New feed, I giggle at the new Singing Bonus. Thank goodness I never had to participate in a new singing bonus. I would be forever out of work. I have a range of like, 3 and a half notes.

 

 

Me, too, for both the giggle and my range.

This almost sounds like you write of all of your phone, internet, and car because using it contributes to your income. Is that true? My understanding is if you use these for private use as well you can write off the proportion you use for business. Maybe it depends?

As long as you are using a certain percentage towards the business. Essentially, you aren't submitting for amounts based on percentages, you should submit the totals. Clients call in and honestly, no one calls me for personal reasons on my landline. My accounting firm does my corporate and personal taxes. So, not sure where you are getting that writing off your phone is not tax fraud when you use it for business you are doing in your home? Same with my car, 20% of it is used to meet with clients. My gas and cell phone is covered through one of my companies, and that's a tax write-off for the company.

It's very helpful to really go through if you have an accountant what you can and can't do.

As long as you are using a certain percentage towards the business. Essentially, you aren't submitting for amounts based on percentages, you should submit the totals. Clients call in and honestly, no one calls me for personal reasons on my landline. My accounting firm does my corporate and personal taxes. So, not sure where you are getting that writing off your phone is not tax fraud when you use it for business you are doing in your home? Same with my car, 20% of it is used to meet with clients. My gas and cell phone is covered through one of my companies, and that's a tax write-off for the company.

 

It's very helpful to really go through if you have an accountant what you can and can't do.

I didn't say it was fraud, just wondering because of the way you worded it in a blanket sort of way " I write off my phone, internet, car,". My guess is you (through your accountant and the tax forms) write of a percentage of these in relation to the percentage used for your business, and not the whole unless you only use it for the business.

There's really no way to determine which percentage for it is used solely for business. Like business/personal trips. Essentially, you can write off meals, travel expenses, hotel, have personal fun, and still write it off. I should clearly state, you need to actually report the income you are making from your home business, whether it's a loss or gain in order to actually qualify for tax deductions that relate to the business.

Also, I wasn't referring to you about the fraud statement, journeynow.

Only business expenses should be written off. Therefore percentage is the proper way, and writing off fun is not proper and therefore tax fraud.

But do what you want - it's not my business or anyone else's. But giving that advice is probably not a great idea.

There's really no way to determine which percentage for it is used solely for business. Like business/personal trips. Essentially, you can write off meals, travel expenses, hotel, have personal fun, and still write it off. I should clearly state, you need to actually report the income you are making from your home business, whether it's a loss or gain in order to actually qualify for tax deductions that relate to the business.

 

Also, I wasn't referring to you about the fraud statement, journeynow.

Oh, I see. Maybe we are in different countries. My understanding is the same as mustlovedogs that " Only a proportional amount can be used", and yes, there is a way to determine what percentage is used for business (such as you said 20% of your car is used for business; you keep logs of the time and mileage.) You can track the percentage of time you use your internet for business purposes vs personal, measure the percentage of your house you use solely for business office, etc.

I think if you are ever audited you must back up your numbers, or end up paying.