Neal Van Zutphen, a CFP based in Tempe, Phoenix, responded: "Saving monies outside of the employer-sponsored plan
(after tax funds) is great for building emergency funds but does not necessarily have the same tax benefits and long-term funding benefits of an IRA or Roth IRA or 403(b)."
For small business employees, the Bureau of Labor Statistics National Compensation Survey shows that while 68 percent of private sector workers have access to an employer-sponsored plan
, that number drops to 49 percent for individuals working for small businesses and 39 percent for part-time workers.
Upwards of 1.7 million New Jersey residents do not have an employer-sponsored plan
, according to a statement from the Assembly Democrats Office citing data from American Association of Retired Persons.
About 152 million Americans are covered by an employer-sponsored plan
The average premium for a family on an employer-sponsored plan
for 2018 was more than $19,600.
Korean salaried workers are automatically subscribed to an employer-sponsored plan
, and failure to pay the state-set premium results in a freeze of personal assets, almost always preceded by reduction of monthly wages in the corresponding amount of unpaid premiums.
Among those currently participating in an employer-sponsored plan
, only 8% had stopped contributing or had decreased their contributions, compared with 45% to 52% of all others regardless of current access or participation history.
An "eligible employer-sponsored plan
" means a "group health plan" that provides for medical care other than just a Health Insurance Portability and Accountability Act (HIPAA) excepted benefit (e.g., stand-alone vision and/or dental, fixed indemnity, and single disease plans).
Since hospital charges typically equate to about 40 percent of overall health care costs for an employer-sponsored plan
, this piece alone can provide overall savings of 20 percent to 25 percent or more for an employer, all other costs being equal.
Because the default provides a safe harbor for participant-directed dollars into an employer-sponsored plan
, the original legislation included that 90-day provision.
These measures mark progress, but only for the benefit for workers eligible to participate in an employer-sponsored plan
. Which brings us back to those 70 million Americans without access to one.
Minimum essential coverage is coverage under a government-sponsored program (Medicare, Medicaid, Tricare, the Children's Health Insurance Program, etc.); an eligible employer-sponsored plan
(defined in Regs.