Is this a good salary for a software developer?

[Punkyc7]

For entry level? I seriously doubt it

I know some one you got 95,000 plus 20,00 stock and full benefits. It just depends on where you work and for what company.

 

[jesse73]

I know some one you got 95,000 plus 20,00 stock and full benefits. It just depends on where you work and for what company.

I think others have said that. I know somebody working at google making 120+ one year in the job but I know its an outlier case which would be awful to use to represent the average person or expectations.

 

[jk]

I know some one you got 95,000 plus 20,00 stock and full benefits. It just depends on where you work and for what company.

If this happens, it's not very common. I can see some of the financial companies in NY paying something like this for someone from a "brand name" school with the right background but it's not common

 

[trickslapper]

I've never heard of anyone making that much money out of undergraduate from where I'm from.

In other news... does anyone know if it's a good idea to get a 401k AND an HSA? I just got my benefits paperwork and it's a little overwhelming.

 

[Astronuc]

I've never heard of anyone making that much money out of undergraduate from where I'm from.

In other news... does anyone know if it's a good idea to get a 401k AND an HSA? I just got my benefits paperwork and it's a little overwhelming.

The salary looks good for a starting salary. Charlotte has UNC-Charlotte, so that's a possibility.

If one does not need the money now, it is good to start saving for retirement as soon as one can. These days a 401K is standard, as opposed to a pension. HSAs are OK to cover deductibles, and some health plans have high deductibles and out of pocket expenses, for which one can use the HSA. An HSA simply deducts money, pretax, and one can then use it for medical expenses. If it rolls over and accumulates, that's good, as opposed to a FSA, in which one loses funds not spent.

http://en.wikipedia.org/wiki/Health_savings_account

 

[trickslapper]

The salary looks good for a starting salary. Charlotte has UNC-Charlotte, so that's a possibility.

If one does not need the money now, it is good to start saving for retirement as soon as one can. These days a 401K is standard, as opposed to a pension. HSAs are OK to cover deductibles, and some health plans have high deductibles and out of pocket expenses, for which one can use the HSA. An HSA simply deducts money, pretax, and one can then use it for medical expenses. If it rolls over and accumulates, that's good, as opposed to a FSA, in which one loses funds not spent.

http://en.wikipedia.org/wiki/Health_savings_account

Everything i have read about HSAs has confused me. People say to use it as a 401k but, it's a medical expenses account.

Why don't people have a 401k for their retirement and the HSA for medical expenses?

 

[jk]

Everything i have read about HSAs has confused me. People say to use it as a 401k but, it's a medical expenses account.

Why don't people have a 401k for their retirement and the HSA for medical expenses?

401k is a retirement account and HSA is for paying health expenses. They are two different things.

I would get the 401k and put the maximum allowable amount (17k/year this year) on it. It is one of the best financial decisions you can make. In addition to saving money for retirement, it also lowers your taxable income so if you make 52,000 a year and put away 17,000 into the retirement account, you only pay taxes on 35,000. In addition, a lot of companies will give you matching money into your 401k account up to some percentage. I would also looking into getting an IRA account in addition to your 401k

I would also get the HSA but make sure to estimate your medical expenses. If you're young and healthy, you usually don't need to put much into your HSA account. Just enough to cover the cost of annual checkups, glasses, prescriptions etc. Whatever money you don't spend by the end of the year is usually forfeited. Optometrists love HSA's b/c people buy extra glasses etc at the end of the year if they have money left in their accounts. Check the rules for your plan

Also, learn as much as you can about retirement plans, investments etc. The decisions you make now will have a large impact on your life down the line.

 

[lisab]

The salary looks good for a starting salary. Charlotte has UNC-Charlotte, so that's a possibility.

If one does not need the money now, it is good to start saving for retirement as soon as one can.

I'd suggest that even if you do need the money now, still put a bit away for retirement. At least put enough into maximize your company's match. After all, that's free money!

 

[Locrian]

If you're young and healthy, you usually don't need to put much into your HSA account. Just enough to cover the cost of annual checkups, glasses, prescriptions etc. Whatever money you don't spend by the end of the year is usually forfeited.

As astronuc mentioned, an HSA is not forfeited. If you've heard otherwise it could be that there is some confusion between a Canadian Health Spending Account (HSA) and a US Health Savings Account (HSA). The Canadian HSA has a one year rollover of funds OR a one year carryover of claims.

To be clear, the US HSA is not forfeited, and is the property of the employee. For comparison, an HRA is a Health Reimbursement Arrangement (also US), and is the property of the employer. It may or may not be rolled over, at the employer's discretion.

Why don't people have a 401k for their retirement and the HSA for medical expenses?

Some people do have a 401(k) for retirement savings and an HSA for medical expenses. If you go this route, I would use them for those purposes. Note that some people use the HSA as a savings account due to its tax advantages, but I would be surprised if you had enough money left over that this would be a good idea, and would generally advise against it anyways, for a variety of reasons.

An HSA with a high deductible plan is a great deal for a young person. However, you need to be responsible enough to put money away (in the HSA, for instance) to cover the high deductible, copays and coinsurance that would be required in a catastrophic incident. If you don't think you can do that, sign up for a more comprehensive health plan.

 

[trickslapper]

Some people do have a 401(k) for retirement savings and an HSA for medical expenses. If you go this route, I would use them for those purposes. Note that some people use the HSA as a savings account due to its tax advantages, but I would be surprised if you had enough money left over that this would be a good idea, and would generally advise against it anyways, for a variety of reasons.

An HSA with a high deductible plan is a great deal for a young person. However, you need to be responsible enough to put money away (in the HSA, for instance) to cover the high deductible, copays and coinsurance that would be required in a catastrophic incident. If you don't think you can do that, sign up for a more comprehensive health plan.

So how do the people who use the HSA as a savings account pay for their medical expenses until their deductible is reached? Out of pocket?

Isn't it a better idea to take advantage of the n% contribution that a company offers for a 401k instead of using the HSA as a "401k"?

To be honest I'm a little overwhelmed with all of this. I just received a bunch of paperwork (i have a pdf with over 300 pages that describes all the benefits) from my company and I've never had to think about this sort of stuff. Good news is i have a whole month to read up and make good decisions.

 

[akdude1]

Don't let salary limit you from doing what you love. but anyway 25 bucks an hour for an entry level job is too good to pass up I'd do it...

 

[Astronuc]

So how do the people who use the HSA as a savings account pay for their medical expenses until their deductible is reached? Out of pocket?

The benefit of HSAs or FSAs is that the money is taken pre-tax, to it reduces one's taxable income, and the tax that one pays in that year. The HSA is beneficial since it accumulates, i.e., one doesn't lose it. It's better if it does not have to be used. Ideally, it would accumulate until one needs it for a serious illness, or if one were to get married and have children, which can cost a lot, and eventually when one retires in 45-50 years, although I'm not sure how HSAs carry over if one leaves a company.

Isn't it a better idea to take advantage of the n% contribution that a company offers for a 401k instead of using the HSA as a "401k"?

It is better to take advantage of any amount that the company matches.

To be honest I'm a little overwhelmed with all of this. I just received a bunch of paperwork (i have a pdf with over 300 pages that describes all the benefits) from my company and I've never had to think about this sort of stuff. Good news is i have a whole month to read up and make good decisions.

Yes - it is overwhelming, but it's part of the modern business world.

 

[Locrian]

Isn't it a better idea to take advantage of the n% contribution that a company offers for a 401k instead of using the HSA as a "401k"?

Absolutely.

To be honest I'm a little overwhelmed with all of this. I just received a bunch of paperwork (i have a pdf with over 300 pages that describes all the benefits) from my company and I've never had to think about this sort of stuff. Good news is i have a whole month to read up and make good decisions.

Take your time and really learn about it. This could end up being a significant portion of your compensation. There are several reasons group benefits are popular. One is that there are fundamental benefits to insuring groups (reduces anti-selection). Another is the tax advantage that the benefits receive.

Some of the benefits probably don't have much value to you. Group life, for instance, is taxed on benefits over $50k, and isn't something you likely need much of now, so you may choose not to go over 1x salary. Some of the post retirement welfare benefits probably have no value to you - what are the odds you'll be working there for the rest of your life? They're likely not pre-funded, so if you leave you'll receive no benefit from them.

Finally note that if this is a smallish business, your health plan will change radically in 2014 due to the Affordable Care Act. If it is large (>100 employees) then that act will have little impact on you (though your employer could still choose to make other changes).