Maybe your company has always offered a 100% match on the first 2% of income that an employee contributes to a qualified retirement plan like a 401(k).
But this practice might result in a good outcome for your employees. How about offering to contribute a 25% match to the first 8% that each employee defers to his or her account? It will cost your company the same while encouraging employees to save more. It might even move some nonparticipants off the fence.
Note: Anti-discrimination rules can restrict contributions of highly paid employees, like the owners of the company. Therefore, it may be in your personal best interest to encourage higher contributions by the rank-and-file.
- Small Business Tax Deduction Strategies No matches