What do employers usually contribute to a retirement plan?

Question

This is assuming that I would contribute the maximum to the 401k plan. Are there any good websites which have information as to what employers contribute?

Answer 1

City employee's, police...etc..Usually get 50% of their pension plan contributed by employers.

Answer 2

totally dependent upon what you're looking for. Are you the employer? How old are you? How much do you gross (if it's over 225k just say 225k) How many employees do you have? What is their average pay?

A good 401k plan should be designed to provide maximum benefit to the small business owner but that the same time allow for adequate savings by the employees.

For me I think a Safe Harbor matching plan is a great benefit for employees.. That's essentially 100% vested match on first 4% that employees contribute (they must contribute 5% to get the 4% match). In exchange for that the employer (all HCE's) can contribute up to the maximum. Companies that have long term employees do this because their staff would be 100% vested anyways. Companies with a lot of short timers do this because it encourages participation but they still benefit even if they employees don't. As I said they can contribute to the max regardless of if anyone else defers.

Of course there are other rules with this type of plan. Look up online for Third Party Administrators in your area...one of them is bound to have a website that will explain it better. Or choose me as best answer and ask me to contact you via email.

Answer 3

This is, of course, up to the company; but a very common figure is 50% of your contribution up to 3% of your income. Your employee handbook or HR advisor can tell you.

When saving in a 401(k), it is usually best to start with contributing only the minimum amount necessary to maximize the employer's match (6% in the above example). You should then look into other tax qualified options, such as a Roth or traditional IRA if eligible. After you've exhausted all other appropriate tax-free and tax-deferred options, you can increase your 401(k) contribution.

Finally, never leave funds in your 401(k) after you leave the company, or roll them into another employer-sponsored plan. Instead, roll them into an IRA where you'll have more options and greater control.

Answer 4

There is no set answer here. My employer contributed nothing to my 401K for the last 13 years. Now the've made a change in policy and they will match my contribution up to 5%. Every employer is different.

Answer 5

Some employers have a partial match to your 401k contributions. If an employer does not, they usually handle most of the costs of the 401k administration.

Answer 6

Just type in retirement in your search, something should come up.I have heard that 401k is meant to be a supplement to any other retirement plan u may have. Some employers match what you put in others as little as possible.Don't count on living your golden years on only the 401k.Might want to look into a Roth IRA as well.
I am still learning about all this stuff myself.I'll be glad to see other answers myself..

Answer 7

the hot Roth deferral is made on an “after-tax” foundation – meaning that taxes are withheld on the time the deferrals are contributed to the plan. Then, if particular situations are met, distribution of earnings would be tax-loose (the distribution of actual Roth deferrals is often taxfree). A plan that helps contributors to make Roth deferrals besides because of the fact the classic pre-tax deferrals will enable guy or woman contributors, according to their particular situations, to make present day taxation possibilities. those possibilities might have appreciably distinctive tax outcomes at retirement whilst the accumulation section is over and that they start to take distributions from their retirement money owed. Roth non-obligatory deferrals are an optionally available plan function which would be included in an present plan layout by ability of plan sponsors. those contributions are made with after-tax money, and any “qualified distributions” of the contributions plus earnings could be thoroughly tax-loose.

Answer 8

it varies... my company matches up to 4% as lond as i put at least 4% in.