Enhancing the 401(k) plan design by moving to auto-enrollment for employee contributions and immediate eligibility for, and vesting in, employer matching contributions
. This is scheduled to take effect in 2019.
NetJets workers are also eligible for employer matching contributions
if they direct some or all of their bonus into their 401(k) accounts.
The employer has the option of including or excluding items such as bonuses, commissions, overtime pay, and stock options for certain plan purposes, such as when calculating deferrals or employer matching contributions
. Therefore, the IRS recommends that contributions be made based on the correct definition of compensation.
Plans with fiduciary advisers are substantially more likely to have employer matching contributions
. They are also more apt to have nonelective or profit-sharing contributions, automatic enrollment, automatic escalation and a written investment policy statement (IPS).
Failure to make employer matching contributions
to all the appropriate employees;
If this second option is elected, no employer matching contributions
* Failure to limit employer matching contributions
under IRC section 401 (m)
Among these are the ability to save current federal and state income taxes on pre-tax contributions, receiving "free money" from one's employer through the employer matching contributions
, the ability to determine how money in a 401(k) plan is invested, and the ease with which a participant's benefits in a 401(k) plan can be transferred from one plan to another as an employee changes jobs.
Participants do not pay tax on any investment earnings inside their 401(k) account or on employer matching contributions
. Thus, Janet held only pretax money within the 401(k) plan.
In addition, they offer an RRSP program with employer matching contributions
In 2010, Deloitte said there was an increase in plan sponsors offering employer matching contributions
(66%) from 2009 (59%).
In a recent paper, Choi, Laibson, and I (7) study a company at which employer matching contributions
were originally made in the form of employer stock, but with no restrictions on subsequent diversification.