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

Get your clients ready for tax season

These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.