401(k) Matching Contributions — What Employers Need to Know

One of most effective ways an employer can persuade their employees to participate in a 401(k) plan is by matching a portion of their pre-tax or <a href="https://www.employeefiduciary.com/blog/roth-401k-deferrals-answers-to-common-questions" rel="noopener ugc nofollow" target="_blank">Roth 401(k) salary deferrals</a>. This is unsurprising when you consider matching contributions are like a guaranteed return on salary deferrals — or “free” money. Yet, despite their indisputable benefit to employees, matching contributions are not the best fit for every 401(k) plan. Sometimes, nonelective contributions like <a href="https://www.employeefiduciary.com/blog/employer-profitsharing-contributions-401k-retirement-plan" rel="noopener ugc nofollow" target="_blank">profit sharing</a> — which don’t require employees to do anything to receive a contribution — are the better alternative. If you’re a 401(k) plan sponsor, you want to understand your company’s matching contribution options. To meet certain 401(k) goals, they can be tough to beat. <a href="https://medium.com/@ericdroblyen/401-k-matching-contributions-what-employers-need-to-know-c3cb454fccb3">Visit Now</a>