Unread 07-31-2003, 02:46 AM
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Default ER Contribution to 401K

We are trying to decide how much of an Employer Match we are going to give our employees on their 401K. Usually the company match was 40% of the employees deferrals. Last year since business was down, the match was only 10%.

We would like to figure a way to give more to employees who earn less than $35,000. We want to redistribute the Employer Match more toward lower paid employees.

Can you share what your company's contribution to your retirement/401K plan is and how it is figured.

Thanks in advance!
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Unread 07-31-2003, 04:20 AM
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Default RE: ER Contribution to 401K

Our company gives $0.25 for every $1 we contribute up to 5% of our pay.
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Unread 07-31-2003, 05:14 AM
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Default RE: ER Contribution to 401K

We match @ 35% up to the first 5% across the board. We do not differentiate between the highest paid exec to the newest lowest paid hourly eligible EE.
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Unread 07-31-2003, 05:57 AM
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Default RE: ER Contribution to 401K

We match dollar for dollar for up to 2% of the employee's base pay. We also do a discretionary contribution of 4% of the employee's base pay rather the employee contributes or not. The catch is the maximum. We set a maximum of $1,000 on matching contributions and a maximum of $2,000 on the discretionary contribution. So basically an employee receives company contributions on the first $50,000 of base pay. After that they are on their own. This allows us to do a higher percentage and helps keep us out of hot water when doing the required testing.

Good luck!
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