Companies Boost 401(k) Participation


SURVEY SAVVY

E mployers can help workers grow their retirement savings through a few simple strategies: introducing automatic enrollment in the company’s 401(k) plan, simplifying plan choices and better communicating the benefits. A May study by Hewitt Associates ( www.hewitt.com ) found that, in companies that had instituted automatic enrollment, the overall employee participation rate rose 14 percentage points.

Clearly, however, more work needs to be done. Although in 2005 the average 401(k) plan balance grew more than 10%, one-third of employees still did not participate in the plan—and one in five didn’t contribute enough to obtain the full company match. Those that contributed only nominal amounts, not surprisingly, were the younger, lower-tenured and lower-salaried employees.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.