Companies Kick Into 401(k) Pool


Company contributions to 401(k) plans averaged 3.2% of pay for the 2007 plan year, according to the 51st Annual Survey of Profit Sharing and 401(k) Plans by the Profit Sharing/401k Council of America. Numerous formulas are used to determine company contributions. For plans with fixed matches, the most common matches are 50 cents per $1 up to the first 6% of pay (26.2% of plans), $1 per $1 up to the first 4% of pay (10.4% of plans) and $1 per $1 up to the first 3% of pay (8.1% of plans).

Source: Profit Sharing/401k Council of America, http://psca.org.

SPONSORED REPORT

Keeping client information safe in an age of scams and security threats

A look at the Dirty Dozen tax scams and ways to protect taxpayer information.

TAX PRACTICE CORNER

More R&D tax help

"Can I use the R&D credit?" PATH Act enhancements make the credit more attractive to a wider range of taxpayers.

QUIZ

Learn to choose between ‘who’ and ‘whom’

Writers can stumble over who and whom (or whoever and whomever). If you write for business, this quiz can help make your copy above reproach.