Bain Capital retirement plan/PSP?

Hoping someone can help me understand this. I’m joining Bain soon as an associate, and I don’t understand at all the retirement contribution listed in the benefits section of the contract. I feel stupid because I already asked the recruiter about it and they explained it, but I don’t get it. Are they taking part of my bonus and putting it into a PSP, and then contributing that to my 401k for the year? Why not just give it to me in cash? Or is there an additional contribution they’re making?

Would be great if someone at the firm or a former employee could answer.

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Don’t know Bain specifically but what they are probably doing is taking a portion of the quoted bonus and sticking it into a 401-k as an employer contribution.

Not up to date on the exact math but your employer has the ability to contribute something like $50k to your 401-k.

This will be netted out of your bonus of course - but it will save you about 50% marginal tax rate. Downside is obviously those funds are not accessible for a while - but if you are making $300-400k liquidity in general isn’t the issue (but then again for pre-MBA associates there is the issue of saving up for business school / housing) 

 

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